Asian shares started cautiously on Monday as investors wait to see if U.S. earnings can justify sky-high valuations, while bond markets could be tested by what should be very strong readings for U.S. inflation and retail sales this week.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was off 0.05% in slow early trade. Tokyo’s Nikkei (.N225) edged up 0.1%, while South Korean stocks (.KS11) rose 0.2%.

Investors were anxious to see how shares in Alibaba Group Holding Ltd fared after China slapped a record 18 billion yuan ($2.75 billion) fine on the e-commerce giant.

Reverberations could be felt beyond China as over a third of the stock is held by U.S. investors, and given the stock making up more than 8% of the MSCI EM index. read more

Some felt the decision was already in the share price.

“Ever since the Ant IPO was cancelled and with the antitrust laws in the pipeline, the market has expected that Alibaba…

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