- Asia's stocks fell on fears of an economic downturn as monetary policy tightens to combat high inflation.
- Japanese stocks fell about 2%, but China and Hong Kong managed to defy the regional trend with a steady start. After the S&P 500 closed at its lowest level since December 2020, US equity futures stabilised and made modest gains.
- Treasury bonds extended a period of high volatility, raising the 10-year yield to around 3.27%. The dollar recovered from its worst two-day decline since 2020.
- Markets are wrapping up a week marked by interest-rate hikes, including the Federal Reserve's largest increase since 1994, a surprise Swiss National Bank hike that boosted the franc, and the latest increase in UK borrowing costs.
- Japan, on the other hand, is expected to maintain monetary easing on Friday. However, concerns about the sustainability of its stance have fueled speculation about a policy surprise. The 10-year bond yield in Japan reached 0.265%, the highest since 2016, defying a curve control policy that seeks a 0.25% cap. the yen dropped.