Title: Global Markets Monthly Update | T. Rowe Price
Headings: Global Markets Monthly Update
Global Markets Monthly Update
Key Insights
U.S.
Stocks Rise, While Bonds Feel Impact of Higher Rates
Stimulus Plan Drives Growth Hopes but Also Inflation Fears
Vaccine Rollout Accelerates
Europe
Europe Tightens Coronavirus Controls; Vaccine Tensions Rise
ECB Increases Bond Purchases; Business Activity, Inflation Up Before Restrictions
BoE Maintains Support; UK Economy Shrinks Less Than Forecast
Japan
Value/Growth Reversion Continues as Record Budget Is Approved
Coronavirus Concerns Weigh, but U.S. Stimulus Plan Boosts Sentiment
BoJ Announces Modest Policy Changes
Key Economic Data Points Disappoint
China
National People’s Congress Reveals Few Surprises
Other Key Markets
Stocks Decline in Turkey
Mexico’s Central Bank Holds Rates Steady
Major Index Returns
Total returns unless noted
Next Steps

Content: The yield of the 10-year Japanese government bond finished the month at 0.098%. Value/Growth Reversion Continues as Record Budget Is Approved
With coronavirus vaccines slowly being rolled out globally and economies either beginning, or planning, to open up, Japan equities started the month positively, once again led by value-oriented stocks. The year so far has been characterized by a reversion in the Japanese market, with value outperforming growth companies, as cheap valuations of companies severely impacted by the pandemic have attracted considerable investor interest. Also driving the strong rally in value this year is the general speculation that inflation is set to rise significantly moving forward, given the vast amounts of fiscal and monetary stimulus provided by governments and central banks globally. Indeed, March saw the Japanese Diet approve a record JPY 106.61 trillion (USD 976 billion) budget for the 2021 fiscal year (commencing April 1), aimed at helping to mitigate the fallout from the coronavirus pandemic as well as rising social security and defense costs. Coronavirus Concerns Weigh, but U.S. Stimulus Plan Boosts Sentiment
The lifting of the coronavirus state of emergency in the Tokyo metropolitan region—the last area in the country to be under such restrictions—provided a further boost to sentiment. However, this was to be short-lived, as news of a third wave of coronavirus lockdowns in some European countries dented hopes of a broad economic reopening, sending Japanese equities sharply lower mid-month. The bad news was compounded later on with reports