The recent run-up in bond yields is being used to justify portfolio changes in preparation for what could be a much different second half.
Japan's benchmark Nikkei index extended its correction to hit a new six-week low on Monday as worries of a slowdown in China returned to the spotlight and a sharp sell-off on Wall Street late last week curbed risk appetite.
US Treasury debt prices slipped, capping the worst month for the market in nearly 2 years, as strong business activity data fanned worries the Fed will slow down the QE.
The dollar rose Friday and was headed for its eighth straight month of gains against the yen on robust U.S. economic data.
Oil prices extended sharp losses on Friday after a key Canadian crude pipeline resumed service, underscoring ballooning supplies in a market with tepid demand and a weak economic outlook.
Gold fell more than 1% as data showing low inflation and improving consumer confidence dampened investor interest, with bullion on track to post sharp losses.
Asian stock markets moved off session highs on Friday to end mixed with the Nikkei leading gains by 1.4 percent after its stunning 5 percent dive in the previous session. Sentiment improved after latest U.S. data eased concerns of an early end to the Federal Reserve's bond-buying program.
Stocks shaved their gains in the final hour of trading Thursday, but still ended modestly higher with the Dow recovering from its worst one-day drop in nearly four weeks, as the latest round of tepid economic data suggested the Fed's bond-buying program would remain intact.
Gold rose around 1.5 percent on Thursday, buoyed by a fall in the dollar after weak U.S. economic data boosted prospects that the Fed will keep its monetary stimulus.
The U.S. dollar fell to a three-week low against the euro after weaker-than-expected U.S. economic data boosted expectations the Fed will keep its monetary stimulus in place.
Oil prices steadied above $102 a barrel on Thursday, erasing earlier losses after a draw in U.S. gasoline stocks sparked hopes for stronger demand in the world's top oil consumer.
European shares pared gains, but closed higher on Thursday, after a round of soft U.S. data.
Global stock markets were volatile Thursday, as investors muddled through conflicting signals about the global economy and awaited a slew of key U.S. economic releases.
The second bout of heavy selling in Japanese stocks in as many weeks is not just about a strengthening yen and pulling-back from lofty levels.
Stocks clawed back from their worst levels but still closed in the red Wednesday, dragged by the defensive sectors such as consumer staples and utilities, as investors questioned when the Federal Reserve would start winding down its stimulus program.
The dollar retreated on Wednesday as U.S. Treasury yields eased from more than one-year highs, although most investors are convinced the greenback's upward trend is intact.
Oil tumbled on Wednesday, in part due to losses in U.S. equity markets on worries the U.S. Federal Reserve could phase out its stimulus program.
Gold edged up to settle at $1,391 on Wednesday, taking a cue from broad dollar losses and falling stock markets with residual support from strong Chinese physical buying.
European stocks closed lower on Wednesday as concerns continued over the possibility the Federal Reserve might begin tapering of asset-purchasing.
Asian stocks rose on Wednesday but ended off session highs as a weak Australian dollar, volatile Japanese markets and renewed fears of the U.S. Federal Reserve tapering its bond-buying program scaled back momentum.
Get the best of CNBC in your inbox