Ella 
Asian markets were more cautious on Monday than last week when markets were hot. MSCI’s Asia ex-Japan index posted its biggest drop in two weeks. Chinese stocks fell 1%, ending their longest winning streak in six years. The sluggish stock market signals a pullback in investor sentiment following the latest tech-stock-driven acquisition spree.
Japan’s inflation exceeded expectations, triggering the market to re-discuss the prospect of the Bank of Japan (BOJ) raising interest rates as early as next month, even though April is still the time when the market believes the Bank of Japan is most likely to take action. The common theory is that as inflation exceeds the BOJ’s target, the BOJ may be more susceptible to normalizing policy. However, currency markets reacted little (USD/JPY remains at +150.50), with many traders expressing doubts about the prospect of the central bank raising interest rates in March while the Japanese economy is in a technical recession.
