Asian Markets Mixed Amid Light Holiday Trading and Inflation Concerns

Asian equities delivered a mixed performance on Monday during a holiday-thinned session. Gains in Chinese markets contrasted with losses in Japan, while other major markets across the region remained closed due to the Easter holiday.

Trading volumes were notably lower, with stock exchanges in Australia, New Zealand, and Hong Kong shut for the day. Meanwhile, sentiment remained cautious following last week's global equity pullback and continued concerns over inflation and trade policy.

China Stocks Edge Higher as PBoC Holds Rates Steady

Chinese equities inched upward after the People's Bank of China (PBoC) held its benchmark loan prime rates (LPR) unchanged. The one-year LPR remained at 3.1%, while the five-year rate—used primarily for mortgages—was held at 3.6%.

The decision was in line with market expectations and signals a continued preference for fiscal stimulus over monetary easing to support the economy. Authorities have proposed additional fiscal measures such as subsidies for household goods and expanded social welfare programs to drive domestic consumption.

• Shanghai Composite: +0.3%

• CSI 300 Index: +0.2%

Japan's Nikkei Falls as Inflation Beats Forecasts

Japanese equities came under pressure following a stronger-than-expected March inflation reading, which complicates the Bank of Japan's (BOJ) monetary policy outlook.

• Core CPI (ex-fresh food): +3.2% YoY

• Core-Core CPI (ex-fresh food and energy): +2.9% YoY, up from 2.6% in February

The data underscores persistent inflationary pressures, keeping core CPI well above the BOJ's 2% target. Despite this, several analysts pushed back their expectations for a rate hike from May to July, citing global uncertainty, particularly over U.S. tariff policies.

• Nikkei 225: -1.2%

• TOPIX: -1.1%

Broader Regional Highlights

• South Korea's KOSPI: Flat

• Thailand's SET Index: -0.4%

• Singapore's Straits Times Index: +1.0%

• India's Nifty 50 Futures: +0.4%

Investors across the region remained wary amid heightened trade tensions. Reports suggest China is willing to reopen trade discussions with the U.S., though Beijing is reportedly seeking a more respectful approach from Washington.

U.S. President Donald Trump stated that “big progress” had been made following meetings with a Japanese trade delegation, which helped temper market concerns. Still, uncertainty over tariffs and their global economic impact continues to weigh on sentiment.

U.S. Futures Weaken in Early Asia Trade

Futures tied to major U.S. indexes opened lower during the Asian session, following a week of declines on Wall Street. Caution prevails as investors digest inflation data, central bank signals, and shifting global trade dynamics.

Supporting Market Data

• Economics Calendar API
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• Forex Daily API
  Monitor currency fluctuations across Asia, particularly USD/JPY and USD/CNY, in response to rate and inflation expectations.
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Conclusion

Monday's session highlighted the regional divergence in policy outlooks, with China maintaining accommodative stances through fiscal means and Japan navigating persistent inflation. With key markets closed and broader uncertainty surrounding trade and central bank decisions, investors appear to be adopting a wait-and-watch approach.

Markets will be closely watching upcoming developments in U.S.-China trade negotiations and central bank meetings for further direction.