The Bank of Japan's (BOJ) surprise move to control its bond yields, allowing long-term interest rates to soar, appears to favor equity risk assets.
For now the dollar is being pushed down by the strengthening of the Yen after the BOJ's decision yesterday, as well as pushing risk assets and US Treasury yields up.
Wall Street reversed a 4-session selloff with the Dow Jones Industrial Average up 0.28% at 32,894.74, the S&P 500 up 0.10% at 3,821.62 and the Nasdaq Composite up 0.01% at 10,547.11.
Europe's STOXX 600 index fell 0.40%, dragged down by interest-rate-sensitive technology and industrial stocks after the BOJ announcement while global stock gauges edged up 0.16%.
This morning's Asian trading session saw Japan's Nikkei 225 fall 0.5% with the Topix losing 0.48% while South Korea's Kospi rose 0.4% and Australia's S&P/ASX 200 rose 1.19%.
Meanwhile, Treasury yields enjoyed the highest jump after the BOJ's announcement with the benchmark 10-year note rising at 3.583% while the 30-year bond reached 3.623% at yesterday's close.
Taking a closer look at the dollar situation, the greenback index fell 0.69% while the Euro was up 0.17% at $1.0623 while the Yen was up 3.94% at $131.71 and the Pound was up 0.26% at $1.3178.
