- Stocks in Asia stabilised, aided by a rally in Hong Kong, as investor concerns about the volatile US-China relationship eased. Treasuries recovered from a drop triggered by hawkish Federal Reserve comments.
- China and Japan's equities markets rose as well, although the S&P 500 and Nasdaq 100 futures varied following a drop in Wall Street shares.
- House Rep. Speaker Pelosi is continuing her journey to Taiwan, which has elicited a furious response from China, but markets are absorbing the moves for the time being as traders consider their implications.
- Treasury yields fell, although the 2-yr rate stayed above 3%. A chorus of Fed members cautioned on Tuesday that the central bank still has a long way to go to manage inflation, prompting traders to reduce their bets on policy easing next year.
- The dollar index was barely changed, and the yen fell as demand for safe havens from geopolitical risk waned.
