- Asian equities, headed by Chinese technology firms, following a dip in US stocks as Wall Street's risk-on sentiment faded in tandem with sector drops. The dollar's gains were essentially preserved.
- A barometer of Hong Kong tech shares tumbled more than 2% on Wednesday, while equity indices in South Korea and Australia fell after closing at their best levels since at least mid-2022 the previous session. Japanese markets are still shuttered for the Christmas season.
- The new year has begun on a sombre tone, following a worldwide rise in both equities and bonds in the fourth quarter due to large wagers on a Federal Reserve shift. Contracts for US stocks were barely changed Tuesday after the tech-heavy Nasdaq 100 plunged the most in more than two months as the Magnificent Seven collapsed.
- Treasury futures were barely moved in Asian hours Wednesday, as cash Treasury trade remains halted due to the Japanese holiday. Bonds fell in US trading, suggesting concerns that policymakers will not deliver the amount of monetary easing priced by money markets, with central banks hesitant to abandon the fight against inflation too quickly.
- After posting its greatest daily rise since March, the dollar traded in a limited range against its Group-of-10 counterparts.
