Shares in Hong Kong jumped on news of a further relaxation of pandemic measures in China, contrasting with declines across Asia. Treasury yields rose on worries that China’s reopening would spur inflation. The Hang Seng Index climbed more than 2%, while equity benchmarks in mainland China fluctuated and those in Japan and Australia fell. South Korea’s Kospi index shed more than 2%. European equity futures dropped and contracts for the S&P 500 traded between positive and negative territory after the index fell 0.4% on Tuesday.
Australia’s 10-year bond yield jumped more than 20 basis points and similar-maturity Treasury yields held their increase from Tuesday when they climbed 9 basis points. The dollar was little changed and the yen weakened after the Bank of Japan announced additional unscheduled bond purchases to cap yields. The cautious sentiment damped investor optimism for a rally in the last trading week of 2022 to cap a brutal year for financial markets. Global equities have lost a fifth of their value, the largest decline since 2008 on an annual basis, and an index of global bonds has slumped 16%. The dollar has surged 7% and the US 10-year yield has jumped to above 3.80% from just 1.5% at the end of 2021. Reports that China would drop quarantine requirements for inbound visitors and begin issuing passports and Hong Kong travel permits to mainland residents increased concern about global inflation pressures. China’s reopening buoyed the outlook for oil, which clung to a three-week high, and came as Russia imposed some restrictions on crude exports to foreign buyers that adhere to a price cap. ron ore surged to its highest since early August, while copper gained in New York. Gold traded flat after edging above $1,800 an ounce in Tuesday trade. US After Hours Very Quiet After Hours Session; nothing very notable, probably will be quiet all week
Nikkei -0,41% Hang Seng +1,25% CSI -0,40% Shanghai -0,25% Shenzen -0,93%
Eur$ 1,0647 CNH 6,9695 CNY 6,9697 JPY 134,08 GBP 1,2028 CHF 0,9295 RUB 69,8512 TRY 18,6869 WTI$ 79,57 - Gold 1,811,35 BTC 16,630 -0,40% ETH 1,195 -1,2%
S&P +0,09% Nasdaq +0,03% EuroStoxx -0,21% FTSE +0,39% Dax -0,11% SMI
Macro :
- Global Bonds Extend Losses Prompting BOJ to Boost Purchases
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