- Asian markets were cautious after another selloff in US stocks, surging bond rates, and volatile currency markets, as investors braced for a heightened chance of a worldwide recession.
- A gauge of the region's equities rose slightly as shares rose in Japan and Australia but fell in Hong Kong and China. After the S&P 500 ended at its lowest level since 2020, US equity contracts climbed.
- Bonds in Australia and Japan remained under pressure, as the benchmark 10-yr treasury yield stayed near 3.9%, a level that was last seen in 2010.
- The BoJ began an unplanned bond purchase operation over a wide range of maturities after the country's 20-yr bond rates soared to their highest level since 2015, putting pressure on global debt markets due to anticipation of additional monetary tightening.
- The dollar index fell from a record high on Monday, as Fed policymakers reiterated hawkish policy views. Asian currencies such as the yen and yuan strengthened marginally but remained near levels that have alarmed policymakers in Japan and China.
