In Asian Equity Markets stocks fell on Wednesday as higher U.S. Treasury yields weighed on global tech firms and pushed the dollar to a five-year high against Japan’s yen. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1 percent, after hitting a three-week high the day before, while Japan’s Nikkei was little changed. In Japan, Nintendo fell 1.7 percent and South Korea’s Samsung shed 2.5 percent. In Hong Kong, tech stocks lost 3.7 percent with added pressure coming from China’s fines on Alibaba, Tencent, and Bilibili.

In Currency Markets the yen was pinned near a five-year low on the dollar on Wednesday and nursing losses on other crosses as traders wagered the Bank of Japan would lag a looming wave of global policy tightening as inflation gallops ahead around the world. The yen fell through support around 115.50 per dollar on Tuesday to hit the five-year trough at 116.35. It last sat at 116.15 per dollar. The euro hovered near a two-week low against the dollar at $1.1279. The kiwi last bought $0.6819 and the Aussie $0.7236. Sterling, meanwhile, has rallied 2.7 percent in a dozen trading days since Dec. 20.

In US Equity Markets the Nasdaq and S&P 500 fell in afternoon trading Tuesday along with shares of big growth names, while the Dow rose as bank stocks rose with U.S. Treasury yields. The Dow rose 0.71 percent, to 36,843.26; the S&P 500 lost 0.10 percent, at 4,791.82; and the Nasdaq Composite fell 1.62 percent, to 15,576.46. Ford Motor Co rose 11.1 percent after the automaker said it would nearly double annual production capacity for its red-hot F-150 Lightning electric pickup to 150,000 vehicles. The S&P 500 bank index was up 3.7 percent and on track for its best day in about a year.

In Commodities Markets global benchmark Brent crude rose on Tuesday to $80 a barrel, its highest since November, as OPEC+ agreed to stick with its planned increase for February based on indications that the Omicron coronavirus variant would have only a mild impact on demand. Brent futures settled up 1.3 percent, at $80 a barrel. U.S. West Texas Intermediate (WTI) crude rose 1.2 percent, to $76.99. Spot gold was last up 0.8 percent at 1,814.45 per ounce. Silver rose 0.7 percent to $23.02 per ounce, platinum was up 1.7 percent at $970.73, and palladium climbed 2.2 percent to $1,865.27.

In European Equity Markets stocks extended their new year rally on Tuesday, led by economically sensitive banks and travel stocks on signs that the Omicron coronavirus variant might be less severe than initially feared. The pan-European STOXX 600 index ended 0.8 percent higher at 494.02 points, hitting a record high for a second consecutive session. Europe’s travel and leisure index rose 3.5 percent to its highest in more than six weeks. British airlines rose, with Ryanair and British Airways-owner IAG climbing 8.9 percent and 11.3 percent, respectively.

In Bond Markets U.S. Treasury yields for most maturities rose on Tuesday, as bond investors geared up for interest rate hikes from the Fed by mid-year to curb stubbornly high inflation. In afternoon trading, U.S. 5-year yields rose to as high as 1.3980 percent, their strongest level since February 2020. They were last flat on the day at 1.3687 percent. The 10-year yield touched a six-week peak of 1.686 percent and was last up 3 basis points at 1.6612 percent. U.S. 30-year yields rose to 2.103 percent, their highest since late October, and were last up 6 basis points at 2.0780 percent.