In Asian Equity Markets indices were higher on Wednesday with shares of automakers in China, Japan and South Korea jumping following news reports that China would cut tariffs on car made in the U.S. to 15 percent from the current 40 percent. Japanese stocks led gains in the region. The Nikkei 225 was up 1.72 percent. Automakers were among the biggest gainers in Japan. Yamaha Motor jumped 5.32 percent, Mitsubishi Motor jumped 3.21 percent, while Toyota inched up 2.02 percent. The Shanghai composite inched up 0.36 percent. Hong Kong’s Hang Seng Index gained 1.36 percent.

In Currency Markets the US dollar held near a one-month high against its peers on Wednesday, supported by a rebound in U.S. government bond yields and weakness of the pound as its battering from uncertainty about Brexit continued. The British currency crawled up 0.15 percent to $1.2505 after falling to $1.2480 overnight, its weakest since April 2017. The currency has lost 1.7 percent this week. The euro was a shade higher at $1.1330 after shedding 0.3 percent the previous day. The Australian dollar, a gauge of broader risk sentiment, was up 0.2 percent at $0.7217.

In Commodities Markets oil prices climbed by more than 1 percent on Wednesday, lifted by expectations that an OPEC-led supply cut announced last week for 2019 would stabilize markets as well as hopes that long-running Sino-American trade tensions could ease. International Brent crude oil futures were at $60.89 per barrel, up 69 cents, or 1.15 percent from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $52.25 per barrel, up 60 cents, or 1.2 percent. Crude prices had lost a third of their value between early October and the announcement of the cuts.

In US Equity Markets the S&P 500 and the Dow closed marginally lower after volatile trading on Tuesday as investors swiveled their focus between China-U.S. trade talks, President Donald Trump’s threat to shut down the U.S. government and political uncertainty in Britain. The S&P 500 lost 0.04 percent, to 2,636.78 and the Nasdaq Composite added 0.16 percent, to 7,031.83. The financial index was the weakest with a 1 percent decline on the day, while the defensive consumer staples sector closed up 0.9 percent, making it the strongest gainer of the day.

In Bond Markets yields on shorter maturity Japanese government bonds (JGBs) edged higher on Wednesday ahead of an auction later in the week, leading to a flattening of the yield curve. The yield on benchmark 10-year JGBs climbed 1 basis point, to 0.050 percent, moving further off a near five-month low of 0.035 percent hit early this week. U.S. Treasury yields ended slightly higher on Tuesday, though the five-year and 30-year yield curve still flattened on persistent worries about political risks.