Asian shares pulled back from multimonth highs on Monday, Jan 21 while the yen firmed after touching a new low in choppy trade ahead of a Bank of Japan policy decision that is expected to deliver bold monetary easing measures, Reuters reported.

The MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged down 0.2 percent despite pockets of strength in Australia, Hong Kong and Shanghai. The index briefly renewed a 17-1/2-month high touched on Friday following a rebound in global equities late last week on upbeat U.S. and Chinese data, as well as signs of progress in U.S. budget talks.

The Dow Jones industrial average .DJI and the Standard & Poor's 500 Index .SPX ended Friday at five-year highs on a solid start to the quarterly earnings season. U.S. markets are closed on Monday for the Martin Luther King Jr. holiday.

European markets are seen tracking Friday's U.S. markets higher, with financial spread-betters predicting London's FTSE 100 .FTSE, Paris's CAC-40 .FCHI and Frankfurt's DAX .GDAXI would open up as much as 0.4 percent. .L.EU