Traders in Asia had the weekend to digest the U.S. market action on Friday, and the signals are mixed. Wall Street fell as implied U.S. rates rose and 2023 rate-cut expectations faded, but technical and momentum indicators are positive, market volatility remains low, and "soft landing" hopes are rising. Monday's session in Asia could also be clouded by the latest deterioration in Sino-U.S. relations and the Chinese spy balloon saga. Ratings agency Moody's warned the Adani Group may struggle to raise capital, and S&P cut the outlook on two of its businesses. Analysts reckon this will be the penultimate hike before the cash rate settles at 3.60% in March.

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