- Ahead of the Federal Reserve's announcement on Wednesday, shares in Asia moved mostly higher. After Japan's head of foreign exchange announced he was ready to step in, the yen recovered from almost its lowest point of the year.
- With Japanese equities driving the increase, MSCI's Asia Pacific Index increased by almost 1%, marking the largest annual return for the Topix benchmark. Following a private poll that revealed China's manufacturing activity had shrunk, shares in Hong Kong and the mainland of China saw volatility. S&P 500 futures slightly declined following the index's reversal on October's last day.
- The yield on the 10-year Treasury note increased over the prior session before slightly declining. The most recent US economic data is being ignored by traders, who are waiting for the Fed to decide whether to hold interest rates again. The US government's new borrowing strategy, which is expected to be unveiled hours before the Fed does, is also a focus.
- China's central bank, meanwhile, removed money from the financial system, indicating that it thought the sharp increase in short-term borrowing prices the day before was only a short-term interruption.
- In response to its policy decision, the Bank of Japan began unscheduled bond-purchase operations to limit yield gains. The yield on 10-year Japanese government bonds reached a new all-time high of 0.97% on Tuesday following the BoJ's announcement that it will set rates on 10-year government debt in a more flexible manner.
