U.S. stock futures dropped and the yen advanced, retracing some of the previous days moves as traders continue to test where fundamental valuations lie amid rapidly changing news flow.

Asian stocks were mixed, with the Sydney market down more than 4% and Hong Kong equities are opening lower, while shares in Tokyo edged higher. S&P 500 futures were about 3% down after the index gained 6%. Australian and Japanese bond yields tracked the sell-off in Treasuries from Tuesday. As the Trump administration moves toward a big fiscal package, Treasury Secretary Steven Mnuchin warned the coronavirus could send U.S. unemployment up to 20% without government intervention. Oil fluctuated after slipping to the lowest since 2003.

Countries continue to ramp up measures to limit travel in a bid to contain the spreading virus, with European countries shutting borders and Australia advising citizens not to travel abroad. Japan reported a further slide in exports as supply chains become increasingly disrupted.

The missing fundamental ingredient for a sustainable recovery in risk appetite is some evidence that the growth of global Covid-19 infection rates is peaking, said Paul OConnor, head of multi-asset at Janus Henderson Investors. Clearly, we are not there yet.

The Trump administrations planned stimulus could amount to $1.2 trillion, aiming to stave off the worst impact of a crisis that already looks set to plunge many of the world’s economies into recession. Meantime, the Federal Reserve reintroduced additional crisis-era tools to stabilize financial markets. Those responses came after stresses appeared in the short-term funding markets.

In Germany, Angela Merkel said it would not rule out joint European Union debt issuance to help contain the impact. And yet more companies are scrambling for cash, with Kraft Heinz, Caesars and MGM drawing down credit lines.

These are the main moves in markets:

Stocks Futures on the the S&P 500 fell 3.4% as of 10:23 a.m. in Tokyo. The index rose 6% on Tuesday.

Japan’s Topix index added 1.5%.

Hong Kong’s Hang Seng lost 1.4%.

South Korea’s Kospi dropped 1%.

Australia’s S&P/ASX 200 Index slipped 3.9%.

Currencies The yen was up 0.5% at 107.18 per dollar.

The offshore yuan was at 7.0380 per dollar.

The euro bought $1.0997, little changed.

Bonds

The yield on 10-year Treasuries fell to 1.00%. It had risen 36 basis points on Tuesday.

Australian 10-year yields climbed 12 basis points to 1.16%.

Japan’s 10-year yield rose to 0.015%.

Commodities West Texas Intermediate crude slid 0.2% to $26.90 a barrel.

Gold was at $1,534 an ounce, up 0.4%.

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