- As investors bet that the worst of the global fallout from the American banking sector has passed, Asian equities rose.
- In Tokyo and Hong Kong, where the Hang Seng Index rose more than 2%, financials were among the top gainers. The US stock market rallied into the close on Tuesday, laying the groundwork for the shift in sentiment in Asia.
- Traders were digesting a slew of economic data from China, where retail sales increased as expected but factory output was slightly lower than expected. The PBoC increased liquidity more than expected while keeping a key lending rate unchanged.
- A currency strength index fell slightly, extending its losing streak to a fifth day. Following a 27 basis point recovery in the rate on Tuesday, the two-year Treasury yield was little changed. It is still significantly lower than it was at the middle of last week, following its worst three-day drop in decades.
- The 10-year yield in Japan increased, while the 20-year yield increased by 15.5 basis points, after the Bank of Japan offered to buy fewer longer-dated bonds than planned in Wednesday's operations.
