-- Most Asian stocks fell on Monday, tracking a weak lead-in from Wall Street as anticipation of key U.S. inflation data kept markets on edge, while Japanese shares fell sharply amid growing conviction that the Bank of Japan will raise interest rates soon.

Regional markets fell tracking a sharp decline in Wall Street on Friday, as growing uncertainty over U.S. interest rates saw traders lock-in profits at record highs, especially in the technology sector. 

Stronger-than-expected data also factored into concerns over higher for longer interest rates, putting an upcoming reading on inflation squarely in focus. 

U.S. stock futures were flat in Asian trade after recouping earlier losses. 

Japanese shares tumble as BOJ pivot appears imminent 

Japan’s index was by far the worst performer in Asia on Monday, sliding 2.3% as a slew of reports indicated that the BOJ was close to ending its ultra-loose policies.

The broader index shed nearly 2%, as both indexes fell further from record highs hit last week. 

Media reports said the BOJ could raise interest rates and end its stimulative yield curve control policies by as soon as , especially amid expectations of higher Japanese wages and inflation. 

An upward revision in Japan’s also showed that the economy avoided a recession in the  fourth quarter. Resilience in the economy gives the BOJ more headroom to immediately begin raising interest rates. 

The BOJ is now set to meet on March 18 and 19, with Reuters reports saying that a hike could come either then or during a late-April meeting. 

China stock losses held back by some improvement in inflation

Chinese stocks fared somewhat better than their peers on Monday, encouraged by stronger-than-expected data released over the weekend.

The rose 0.2%, while the fell 0.2%. Gains in mainland stocks saw Hong Kong’s rise 0.9%. 

Data over the weekend showed Chinese consumer inflation grew slightly more than expected in February, aided by increased spending during the Lunar New Year.

But fell more than expected, signaling that Chinese factory activity still remained under pressure. This notion limited any major upside in Chinese shares. 

Broader Asian markets retreated. Australia’s index slid 1.5%, seeing a heavy degree of profit-taking after reaching record highs last week.

South Korea’s fell 0.4%, while futures for India’s index pointed to a weak open, after the index and the cleared record highs last week.