In Asian Equity Markets Japan’s Nikkei share average failed to maintain early gains on Wednesday, and hit a four-month low as investor sentiment remained shaky ahead of U.S. inflation data due later in the day. Nikkei average initially tracked gains on Wall Street shares to rise 0.6 percent but it quickly lost steam, falling as much as 0.9 percent to 21,061.85. Southeast Asian stock markets traded on a cautious note. The Philippine index fell as much as 0.8 percent, making it the worst performer in the region, dragged by industrials and financials. Malaysia edged down 0.2 percent, with utilities leading the losses, while shares in Indonesia. Singapore shares inched down slightly, as financial stocks weighed. Vietnam was closed for a holiday.

In Currency Markets the US dollar slid to a 15-month low against the yen on Wednesday, as investors remained on edge ahead of key U.S. inflation numbers later in the day, underscoring fragile risk sentiment following the recent shakeout in equity markets. The U.S. currency was 0.8 percent lower at 106.960 yen after falling to106.840, its weakest since November 2016, with a decline in Japanese shares increasing demand for the yen which is often sought in times of market turmoil. The euro added to overnight gains and last traded up 0.25 percent at $1.2383 after going to a one-week high of $1.2392. The New Zealand dollar gained 0.65 percent to $0.7320 after a Reserve Bank of New Zealand’s quarterly survey showed business managers forecast annual inflation to average 2.11 percent over the coming two years, from 2.02 percent in the previous survey.

In Commodities Markets oil prices were stable on Wednesday, supported by healthy economic growth and expectations that a weaker dollar could spur fuel demand. Despite this, crude prices remain well below recent highs due to signs of lingering oversupply, including rising U.S. inventories and ample physical flows globally.  U.S. West Texas Intermediate (WTI) crude futures were at $59.17 a barrel, down 2 cents from their last settlement. WTI was trading above $65 in early February. Brent crude futures were at $62.77 per barrel, up 5 cents from their last close. Gold prices rose for a third straight session on Wednesday to hit a one-week high, buoyed by a weaker dollar, while investors awaited U.S. inflation data for clues on the pace of future U.S. interest rate increases.

In US Equity Markets indices climbed on Tuesday for a third straight session, buoyed by Amazon.com and Apple, while investors focused on inflation data on Wednesday that could upset the market’s fragile recovery – or clear the way for additional gains. Amazon.com rose 2 percent while Apple added 1 percent, both helping the S&P 500 shake off a negative open to the session and climb 0.26 percent by the close. Among the biggest movers was sportswear retailer Under Armour, up more than 17.36 percent on strong quarterly sales, and AmerisourceBergen, up 9.30 percent after the Wall Street Journal reported Walgreens was seeking to buy out the drug distributor.  The S&P 500 gained 0.25 percent to close at 2,662.94. The Nasdaq Composite added 0.45 percent to 7,013.51. Nine of the 11 major S&P indexes rose, led by real estate, up 0.54 percent.

In Bond Markets U.S. long-dated Treasury yields were flat, as investors looked to Wednesday’s U.S. inflation report that could shed more light on the pace of future interest rate increases by the Federal Reserve. Economists expect a 0.3 percent rise in inflation in January and a core figure of 0.2 percent, according to a Reuters poll. U.S. 10-year yields, which move inversely to prices, have risen about 43 basis points so far this year. U.S. 30-year yields are on a similar path, climbing 39 basis points in 2018. At close trading, U.S. 10-year yields fell to 2.840 percent from 2.855 percent late on Monday. U.S. 10-year yields hit 2.902 percent on Monday, the highest since January 2014. U.S. 30-year bond yields fell to 3.128 percent, from Monday’s 3.136 percent. The yield on the maturity touched an 11-month peak of 3.139 percent on Monday.