"European Markets React to China's Inflation Data, Dollar and Yen Movement"

After last week's turbulence in the bond market, traders in Asia are cautiously trading near-term rate expectations, pushing yields and the dollar slightly lower. Investors are awaiting Wednesday's U.S. inflation data. Alibaba's stock gains continue as hopes rise that the $984 million fine for Ant Group signals the end of the Chinese tech sector crackdown. The yen is driving foreign exchange markets as investors retreat from high-yielding bets in emerging markets funded by cheaply borrowed yen. The yen has strengthened to 141 per dollar for the first time in three weeks. The Hang Seng rose 1.5% due to an extension of a support package for China's property sector. The events calendar is relatively quiet until U.S. CPI data on Wednesday and U.S. earnings later in the week. British jobs data and final German CPI are also expected.