- Stocks in Asia dipped on Thursday as renewed concerns over the spread of Covid-19 from China dampened risk appetite on one of the year's final trading days.
- On light trading volume, equity indexes in Japan, Hong Kong, Australia, and South Korea sank more than 1%, while mainland Chinese shares also fell. European market futures dipped, while the S&P 500 wavered after the index lost 1.2% to its lowest level in more than a month.
- 10-yr government bond yields in Australia and New Zealand have risen. The 10-yr treasury yield remained stable after climbing the previous session. The yen rose when the BoJ announced an unexpected round of bond purchases.
- The revelation that the US would require entering aircraft passengers from China to produce a negative Covid-19 test prior to entrance dampened risk appetite. Health officials in Italy said they will test arrivals from China and that nearly half of passengers on two flights from China to Milan tested positive for the virus.
- The threat of additional pandemic disruption to fragile supply networks as central banks struggle to control inflation dampened optimism in the final trading week of 2022, capping off a difficult year for financial markets. Global shares have lost a fifth of their value, the greatest annual decrease since 2008, while a global bond index has fallen 16%. The dollar has increased by 7%, while the 10-year US Treasury yield has risen to above 3.8% from 1.5% at the end of 2021.
