Meanwhile, Indiaâ€™s S&P BSE Sensex 1, -0.12% and Indonesiaâ€™s Jakarta Composite Index were barely moved from their Friday closes. Markets in China, Hong Kong and South Korea are among those closed for the Lunar New Year holiday.
Ric Spooner, chief market analyst at CMC Markets in Sydney, said from a markets perspective, the immigration policy isnâ€™t likely to have any material financial or commercial impact now.
Instead, said Hideyuki Ishiguro, senior strategist at Daiwa Securities, â€śThe marketâ€™s greater focus is on his budget message. So long as he can deliver on that front, itâ€™ll be fine.â€ť
And while for Japan the â€śU.S. is a very big factor, but there are some issues from the Japan side also,â€ť said Daiju Aoki, chief Japan economist at UBS Securities.
Some investors are focused on the Bank of Japanâ€™s bond-buying moves, even it has said it wouldnâ€™t pare back its purchases. But with the inflation picture showing improvement, analysts expect the central bank to slow its purchasing pace. On Friday, the Ministry of Finance said the issuance of new Japanese government bonds would be decreased.
â€śThis is a sign investors are taking for tapering,â€ť said Aoki.
Yields are broadly higher on JGBs, with the newest 40-year tenor up 0.010 percentage point to 1% and the benchmark 10-year TMBMKJP-10Y, +5.79% also up 0.01% to 0.080%.
Risk sentiment wasnâ€™t aided by muted retail-sales data from Japan. Department-store sales fell 2% from a year earlier at existing stores in December, though retail sales overall rose 0.6%.
The sales data have â€śmade investors skeptical about consumption recovery, â€ś Aoki said.
Haven assets, which saw end-of-week weakness, rebounded slightly Monday. Gold was up 0.4% and the U.S. dollar was 0.5% lower at around ÂĄ114.50. That could prove useful for Japanese corporations, who may buy on dips for month-end commercial trade settlements.