Derek Halpenny, European Head of GMR at MUFG, notes that the only equity markets in Asia not to advance were in Japan – the Topix Index dropped 1.3% due to the drop in USD/JPY after Yellen’s speech. Key Quotes “The negative sentiment was further reinforced by the 6.2% m/m drop in industrial production – the largest drop since the earthquake and tsunami in March 2011. The drop was however distorted by a steel mill shutdown which disrupted auto production. Still, the projection for March was for a further modest drop underlining the probability of a contraction in Q1. There is much anticipation of renewed capital outflows from Japan once the new fiscal year begins in April. A continued improvement in financial market conditions would certainly encourage that which should help provide support for USD/JPY on any approach to the 110.00 level.” For more information, read our latest forex news.