- Hong Kong equities rose on news of a further relaxation of pandemic restrictions in China, in contrast to falls across Asia. Treasury yields climbed as investors worried that China's openness would lead to inflation.

- The Hang Seng Index rose more than 2%, while equity indexes in China, Japan, and Australia fell. The Kospi index in South Korea fell by more than 2%. After the S&P 500 lost 0.4% on Tuesday, futures contracts for the index fluctuated between positive and negative territory.

- Australia's 10-yr bond yield increased by more than 20 bps, while similar-maturity treasury yields increased by 9 bps on Tuesday. After the BoJ announced extra unplanned bond purchases to control rates, the dollar was barely moved and the yen fell.

- The cautious sentiment dampened investor hopes for a rally in the final trading week of 2022 to finish off a disastrous year for global markets. Global shares have lost a fifth of their value, the greatest annual decrease since 2008, while a global bond index has fallen 16%. The dollar has increased by 7%, while the 10-year US Treasury yield has risen to above 3.80% from 1.5% at the end of 2021.

- Concerns over global inflation intensified after reports that China might eliminate quarantine procedures for arriving travellers and begin granting passports and Hong Kong travel permits to mainland residents.