"US Inflation Shock Impacts Yen, China CPI in Focus"

The US inflation report has caused a seismic impact on global markets, leading to slashed Fed rate cut expectations, tumbling stocks, and soaring bond yields and the dollar. The Japanese yen plunged to a 34-year low against the dollar, while China faces deflationary pressures as it prepares to release producer and consumer price inflation figures for March. Additionally, ratings agencies have downgraded China's sovereign credit rating and slashed a major developer's credit rating to junk, while US and Japan tout increased joint military cooperation and a new missile defense system.