US producer prices increased by 1.6% year-on-year in February after rising by 1.0% in January. Core producer prices increased by 2.0% year-on-year after advancing by 2.0% in January.

10-year US Treasury yields reacted to the figures, rising by 2.39% to 4.292%. Higher yields pressured rate-sensitive tech stocks. On Thursday, the Nasdaq Composite and S&P 500 declined by 0.54% and 0.19%, respectively. The Dow gained 0.10%.

The Asian economic calendar also impacted market risk sentiment. House prices in China declined by 1.4% year-on-year in February after declining by 0.7% in January. Economists expected a more modest 0.3% decline. The PBoC disappointed the markets, leaving the one-year MLF rate at 4.5%. Economists expected the PBoC to drop the one-year MLF to 4.4%.

Rising bets on a Bank of Japan pivot from negative rates pressured the Nikkei despite USD/JPY gains.

US Equities, the Bank of Japan, and China Data in Focus

On Monday, US economic indicators from the Friday session warrant investor attention. Consumer sentiment weakened in March, with the NY Empire State Manufacturing Index signaling a deterioration in manufacturing sector conditions.

US consumer and producer price trends continued to test buyer demand for riskier assets. Hotter-than-expected inflations from Tuesday and Thursday pressured rate-sensitive stocks further. 10-year US Treasury yields rose by 0.42%, ending the session at 4.310%.