Stocks, Bonds Fall as BOJ’s Surprise Policy Shift Spooks Investors

Stocks, Bonds Fall as BOJ’s Surprise Policy Shift Spooks Investors
People walk past a screen displaying the Hang Seng stock index at Central district, in Hong Kong, on Oct. 25, 2022. Lam Yik/Reuters
Reuters
Updated:

LONDON—Global stocks and bonds fell on Tuesday as a surprise policy tweak by Japan’s central bank rattled investors already worried about the economic fallout of rising interest rates and lifted domestic bond yields to seven-year highs.

The Bank of Japan (BOJ) widened the allowable band for long-term yields to 50 basis points on either side of its 0 percent target, from 25 basis points previously.