Shares Sobered by Fed Warning, China Acts on Property

A passerby walks past an electric monitor displaying the graph of recent movements on Japanese yen exchange rate against the U.S. dollar in Tokyo, Japan, on Oct. 20, 2022. Issei Kato/Reuters

SYDNEY/LONDON—Share markets continued last week’s rally in more modest fashion on Monday after a top U.S. central banker warned investors against getting carried away over one inflation number, while Chinese stocks gained on aid for the country’s property sector.

A modest miss on U.S. inflation was enough to see two-year Treasury yields dive 33 basis points for the week and the dollar loses almost 4 percent—the fourth biggest weekly decline since the era of free-floating exchange rates began over 50 years ago.