On Tuesday, Asian markets will experience lower trading volumes due to the Lunar New Year holiday and China’s closure.

The global ‘risk-on’ frenzy is strong, with the S&P 500 and Nasdaq reaching all-time highs.

However, Asia is not fully participating, with the MSCI Asia ex-Japan index declining.

The economic schedule is light, with the Australian consumer mood survey and the inflation rate of wholesale prices in Japan.

The Bank of Japan’s decision to abandon its ultra-loose policy may be subject to movement based on the country’s wholesale inflation statistics.

The IMF has highlighted that inflation is now widespread across goods and services, with the main cause shifting from rising costs to domestic demand.

The BOJ is considering stopping its yield curve control and increasing interest rates.