In Asian Equity Markets stocks fell on Tuesday, with the Nikkei logging steep losses after the Bank of Japan unexpectedly tweaked its ultra-dovish stance and struck a less accommodative tone than markets were expecting. The Nikkei 225 index lost nearly 3 percent to a two-month. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 2 percent and 1.4 percent, respectively. Hong Kong’s Hang Seng index and the Taiwan Weighted index fell around 1.9 percent each, while South Korea’s KOSPI shed 0.8 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.6 percent.

In Currency Markets the yen rose to a four-month peak against the dollar on Tuesday after the Bank of Japan said it would review its yield curve control policy and widened the trading band for the 10-year government bond yield in an unexpected tweak. The dollar fell as much as 3.1 percent to 132.68 yen, a level last seen in mid-August. Against the dollar, the euro declined 0.26 percent to$1.0579 and sterling eased 0.33 percent to $1.2105. Against the greenback, New Zealand’s dollar fell as much as 1 percent to $0.6301. The Australia dollar fell as much as 1 percent to $0.6629 for the first time since Nov. 22.

In US Equity Markets stocks closed lower on Monday for a fourth straight session with Nasdaq leading declines as investors shied away from riskier bets, worried the Fed’s tightening campaign could push the U.S. economy into a recession. The Dow fell 0.49 percent, to 32,757.54, the S&P 500 lost 0.90 percent, to 3,817.66 and the Nasdaq Composite fell 1.49 percent, to 10,546.03. Meta Platforms shares lost 4.1 percent after the European Commission said it could impose a fine of up to 10 percent of the tech conglomerate’s annual global turnover if evidence showed an infringement of the EU’s antitrust laws.

In Commodities Markets oil prices rose on Monday, as optimism around China relaxing its COVID-19 restrictions outweighed fears of a global recession that would weigh on energy demand. Brent crude gained 76 cents to settle at $79.80 a barrel, while U.S. West Texas Intermediate crude rose 90 cents to $75.19. Spot gold fell 0.2 percent to $1,789.46 per ounce, while U.S. gold futures settled down 0.1 percent to $1,797. Spot silver fell 1 percent to $22.97 per ounce, platinum fell 1.1 percent to $980.25, and palladium lost 2.1 percent to $1,677.04.

In European Equity Markets stocks advanced on Monday, supported by the energy sector, after a bruising selloff last week sparked by growing fears of a global recession as major central banks promised further interest rate hikes ahead. The region-wide STOXX 600 index closed 0.3 percent higher, outperforming the slide in its U.S. peers. Germany’s DAX advanced 0.4 percent. Among individual companies, Germany’s Volkswagen AG lost 10.7 percent to the bottom of Europe’s STOXX 600. Energy stocks jumped 1.7 percent to spearhead gains on the index.

In Bond Markets U.S. Treasury yields rose on Monday as investors evaluated how high the Federal Reserve will ultimately hike interest rates and how long it will hold them at higher levels as it battles persistently high inflation. Benchmark 10-year note yields were last at 3.581 percent. They are above an almost three-month low of 3.402 percent on Dec. 7, but are holding well below the 15-year high of 4.338 percent reached on Oct. 21. Two-year yields were at 4.254 percent, and are below a 15-year high of 4.883 percent hit on Nov. 4.