- Asian stocks fell alongside US equities, with bond yields at their highest since the global financial crisis. The region's equity index declined, with declines in Japan, South Korea, and Australia. Hong Kong and mainland China stocks varied. US futures fell in Asia as investors were concerned about economic issues, causing the S&P 500 to fall from a gain of more than 1% to a loss of about the same amount.
- Fed members' hawkish views, as well as swaps pricing in a 5% peak policy rate in 2023, should keep the dollar strengthened against its major peers and emerging-market currencies. The yen stayed weaker than the carefully watched 150 per dollar barrier, fuelling suspicion that additional assistance will be required to maintain the Japanese currency.
- After Liz Truss resigned as UK Prime Minister, the dollar remained stable as the pound fluctuated.
- 10-yr Australian bond rates rose 10 bps on Thursday, mirroring a move in similar-maturity treasuries.
- After the monetary authority launched unscheduled bond purchases on Thursday to rein it in, Japan's benchmark 10-yr yield was back at the 0.25% upper limit of the central bank's trading range.
- Investors in Chinese assets continue to assess conflicting signals from the government and Beijing's twice-decade party conference. Following a rumour that officials were considering lowering quarantine laws, mainland markets temporarily gained Thursday before resuming losses as experts pointed to broader concerns about a faltering economy.
- A report that the Obama administration is considering new export curbs on China's access to strong developing computing technologies may add to the country's stock market woes.
- Meanwhile, US equities volatility is not abating ahead of Friday's $2 trln options expiry and another round of corporate earnings.
