In Asian Equity Markets stocks fell further on Wednesday as investors gauged the implications of a surprise policy shift by the Bank of Japan, with the Nikkei index extending its losses to an over two-month low. The Nikkei 225 was the worst performer in Asia for a second consecutive session, losing 0.7 percent after a 2.5 percent tumble in the prior session. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.1 percent and 0.3 percent, respectively, amid continued uncertainty over rising COVID-19 cases in the country.

In Currency Markets the yen eased a bit on Wednesday but held on to most of its overnight gains against the dollar as traders contemplated the shock Tuesday move by the Bank of Japan to adjust its control of bond yields, a slight move away from its ultra-easy monetary policy. The yen weakened 0.34 percent versus the greenback to 132.15 per dollar. The euro was down 0.13 percent at $1.0607, while sterling was last trading at $1.2164, down 0.14 percent on the day. The Australian dollar fell 0.21 percent to $0.666, while the kiwi fell 0.61 percent to $0.631.

In US Equity Markets stocks rose on Tuesday after four sessions of declines, but investors fretted about weak holiday shopping and rising bond yields added pressure after the Bank of Japan’s (BoJ) surprise tweak of monetary policy. The Dow rose 0.28 percent, to 32,849.74, the S&P 500 gained 0.10 percent, to 3,821.62 and the Nasdaq Composite added 0.01 percent, to 10,547.11. General Mills Inc shares sank 4.6 percent after quarterly sales at its high-margin pet business took a hit due to key retailers cutting back on inventory, overshadowing an increase in its full-year earnings and sales forecast.

In Commodities Markets oil prices ended higher on Tuesday in a volatile session as a worsening outlook for a major U.S. winter storm sparked fears that millions of Americans might curb travel plans during the holiday season. Brent crude futures settled up 0.2 percent, to $79.99 per barrel while U.S. WTI crude futures settled up 90 cents at $76.09 per barrel. Spot gold rose 1.6 percent to $1,815.10 per ounce. Spot silver rose 4.6 percent to $24.01 per ounce, posting its biggest intraday gain since early November. Platinum was up 3.4 percent at $1,012.75, while palladium gained 3.8 percent to $1,733.38.

In European Equity Markets stocks fell on Tuesday, pulled down by rate-sensitive tech and industrial stocks, after the Bank of Japan (BOJ) rattled global markets with a surprise policy shift that would allow long-term interest rates to rise further. The region-wide STOXX 600 index closed down 0.4 percent. Rate-sensitive tech stocks declined 1.2 percent, while industrials followed suit with losses of 0.8 percent. Real estate stocks slid 2.2 percent. Shares of Orange fell 1.0 percent after the French telecoms group said its deputy chief executive and head of finance is leaving the company.

In Bond Markets U.S. Treasury yields rose on Tuesday after the Bank of Japan surprised markets by widening the band of its yield curve control, sparking a global sell-off in bonds. Benchmark 10-year note yields rose 10 basis points to 3.684 percent, while two-year yields were little changed on the day at 4.266 percent. The yield curve between two-year and 10-year notes scaled back its inversion to 58 basis points, but remained at deeply negative levels, indicating concerns about an impending recession.