It promises to be another dramatic day in Asia on Wednesday, as investors digest the huge moves in Japan's government bond and currency markets and brace for a raft of potentially market-moving economic indicators from across the continent.
Particular attention will be paid to China's 'unofficial' Caixin PMI report, a day after 'official' PMI data showed that factory activity unexpectedly contracted in October. Not only that, it shrank faster than the most pessimistic prediction in a Reuters poll had forecast. But if the yuan is under pressure, it is nothing compared to the onslaught Japan's yen is facing. After the Bank of Japan on Tuesday scrapped the 1% ceiling for the 10-year government bond yield, the yen sank to a new one-year low against the dollar and a fresh 15-year low against the euro.