- Chinese stocks led Asian shares lower on Wednesday, as markets remained cautious ahead of the Federal Reserve chairman's congressional testimony.
- US and European equity futures were marginally higher, while Japanese stocks defied the Asian trend by reversing early losses.
- The Hang Seng Index fell about 1.5% as it headed for a third straight day of losses ahead of a holiday in Hong Kong and the mainland on Thursday. For the first time since November, the yuan fell below the closely watched 7.2-per-dollar level.
- Investors remain dissatisfied with Beijing's failure to issue specific support measures thus far, and with banks offering only modest rate cuts. The sentiment was shared by US-listed Chinese stocks, which had previously experienced their biggest drop in three months.
- Bond yields fell in Asia on Tuesday, following the lead set by US Treasuries. The 10-year Australian bond yield fell by about six basis points, while the Japanese equivalent fell by one basis point. On Wednesday, the yield on the 10-year Treasury note increased marginally.
- The dollar strengthened against all of its Group-of-10 counterparts except the yen on Tuesday, according to a gauge of dollar strength. On Wednesday, the Japanese yen fell slightly.
