- Asian markets rose on Wednesday after US stocks ended a four-day losing streak, bringing some relief in what has been one of the worst years for stocks and bonds in more than a decade.
- The yen fell slightly after its biggest one-day gain since 1998 on Tuesday, when it gained about 4% against the dollar due to a surprise policy change by the BoJ.
- Japan's 2-yr government yield surpassed zero for the first time since 2015, while 10-yr treasury yields in Asia climbed marginally after climbing 10 bps for the second straight session on Tuesday.
- Hong Kong, mainland China, and Australia's stocks climbed, as did US and European futures contracts. Japanese markets fluctuated, with bank stocks climbing for a second day on optimism that higher interest rates will enhance their profitability.
- The impact of the BoJ's surprising decision to allow 10-yr government bond yields to trade up to 0.5%, up from a previous cap of 0.25%, is still being felt. On Wednesday, the yield was around 0.45%.
