Lookup lists in microservices

When developing microservices where each microservice has its own database, the issue of "sharing" lookup data becomes challenging. So I'm wondering what is the best practice for dealing with this?

1. Create a separate Lookups Microservice which exposes the data through a Web API?
2. Save the lookups which are relevant to each microservice in its own database?

If we go with the second option (which is my preferred one), do you think it's a good idea to share the lookups across all microservices through a distributed cache, or should this be restricted through the API of each microservice?

Any other suggestions?