- Stocks rose while the dollar fell amid cautious trading ahead of US inflation data, which could shape the outlook for interest-rate hikes in the coming year.
- Hong Kong's decision to scrap its three-day Covid monitoring period for arriving travellers boosted sentiment during Asian trading, sending the city's shares higher. US futures remain marginally lower.
- The dollar fell marginally against the majority of its major counterparts. Treasury yields fell slightly on Tuesday, following gains on Monday that pushed the 10-yr yield above 3.6%. Government bond yields in Australia and New Zealand increased slightly.
- Investors will continue to keep an eye out for market risks associated with Covid infections in China. They are also weighing the impact of Japan and the Netherlands agreeing in principle to join the US in tightening controls on the export of advanced semiconductor machinery to China. On the news, trading in Asian semiconductor stocks was mixed.
