"Asian Markets React to Inflation Concerns as Nikkei Surges"

Japanese stocks, led by the Nikkei, reached a near 34-year high, while Asian equities remained subdued ahead of U.S. inflation data. U.S. rate futures are pricing around 140 basis points of rate cuts this year, with focus on Thursday's U.S. consumer price data. Geopolitical tensions and disruptions in the Red Sea and Libya raised oil prices, while foreign exchange and fixed income markets traded cautiously. Chinese lending figures are also awaited, with expectations of further easing amid dour investor sentiment.