In Asian Equity Markets stocks rose slightly on Thursday amid some optimism over a Chinese economic recovery this year, while Japan’s Nikkei sharply reversed recent gains as traders bet on more hawkish moves from the Bank of Japan. The Nikkei 225 index fell 1.5 percent. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.3 percent and 0.2 percent. Other China-exposed stocks also took some support from the statement. South Korea’s KOSPI index added 0.3 percent, while Australia’s ASX 200 index jumped 0.6 percent.

In Currency Markets the dollar rose broadly on Thursday as growth concerns about the U.S. economy drove demand for the safe-haven greenback, while the yen rebounded as speculators doubled down on bets that the Bank of Japan would shift away from its yield curve control policy. Sterling fell 0.15 percent to $1.2330, while the euro steadied at $1.0795. The Aussie fell 0.56 percent to $0.6902. The kiwi lost 0.47 percent to stand at $0.6415. Meanwhile, the greenback failed to eke out a gain against the Japanese yen and was last 0.82 percent lower at 127.87 yen.

In US Equity Markets the S&P 500 and the Dow lost almost 2 percent on Wednesday, their biggest daily drops in more than a month, after weak economic data fueled recession worries while hawkish comments from Federal Reserve officials soured investor moods further. The Dow fell 1.81 percent, to 33,296.96 and the S&P 500 lost 1.56 percent, to 3,928.86. The Nasdaq Composite fell 1.24 percent, to 10,957.01. PNC Financial Services Group Inc shares lost 6 percent after it missed estimates for its fourth-quarter profit.

In Commodities Markets oil prices fell about 1 percent on Wednesday, surrendering early gains as worries about a possible U.S. recession outweighed optimism that China’s lifting of COVID-19 curbs will fuel demand for crude in the world’s top oil importer. Brent futures fell 1.1 percent, to settle at $84.98 a barrel. U.S. West Texas Intermediate (WTI) crude fell 0.9 percent, to settle at 79.48. Spot gold fell 0.2 percent to $1,904.84 per ounce. Spot silver fell 1.6 percent to $23.55 per ounce, platinum gained 0.2 percent to $1,041.25 while palladium fell 2 percent to $1,708.59.

In European Equity Markets stocks marked their longest winning streak since November 2021 on Wednesday, lifted by upbeat earnings, while optimism over China’s economic recovery lifted luxury stocks with Hermes hitting an all-time high at one point. The pan-European STOXX 600 rose 0.2 percent, extending gains for a sixth straight day on a boost from mining and technology stocks. ASM International NV jumped 9.8 percent after the Dutch semiconductor supplier reported fourth-quarter revenue ahead of its forecast, citing better-than-expected supply chain conditions and higher conversion of the backlog.

In Bond Markets U.S. 10-year Treasury yields fell to a four-month low on Wednesday after data showed that U.S. retail sales fell more than expected in December and as the Bank of Japan maintained its bond yield cap, reducing concerns that investors would switch out of U.S. debt and into Japanese bonds. Benchmark 10-year notes fell as low as 3.372 percent, the lowest since Sept. 13. Two-year yields reached 4.072 percent, the lowest since Oct. 4. The yield spread between two-year and 10-year notes was last a minus 70 basis points.