Asian stocks fell to new lows on Thursday, as sentiment remained vulnerable due to ongoing volatility in Japan's benchmark index, fears of Fed tapering and caution ahead of key central bank meetings in Europe.
US Treasurys prices rose as weak economic data and falling stock prices spurred safe-haven bids, with investors waiting for government payroll numbers later in the week.
The dollar weakened against most currencies on Wednesday after a report showed hiring in the U.S. private sector fell short of expectations last month.
Gold prices settled nearly flat. Earlier, prices rose after U.S. jobs data missed expectations, curbing speculation the Fed may start paring back its monthly bond-buying program.
Brent crude climbed towards $104 a barrel after data showed fuel stockpiles in the United States fell sharply, signalling stronger demand.
In another volatile afternoon session, the Nikkei tumbled 3.8 percent to a new two-month low on Wednesday while the yen inched higher after Prime Minister Shinzo Abe's third "Abenomics" arrow failed to impress investors.
The dollar recovered against the yen on Tuesday as investors sought to take advantage of the previous day's cheapening to buy back the U.S. currency.
Brent crude oil rose more than $1 per barrel, shaking off early losses as rumors spread that South Korea would create new incentives for refiners to import crude that could bolster demand.
Gold settled below $1,400 an ounce, extending losses on worries over demand in the world's largest consumer, India, after the government further restricted imports of the metal.
European markets closed higher, but off session highs in afternoon trade on Tuesday, as worse-than-expected factory data for the euro zone dented investor sentiment.
Asian stocks ended mixed on Tuesday with Japan's benchmark Nikkei index leading gains by 2 percent and Sydney shares gaining traction after the Australian central bank left the door open for future easing at its policy meeting.
The dollar-yen's fall below the key 100 mark could just be the start of a downtrend for the currency pair, analysts tell CNBC.
Higher interest rates are likely to keep Wall Street on edge, while Japanese markets are likely to keep the whole world on edge.
The dollar plunged against a broad swath of currencies on Monday as weak U.S. manufacturing data curbed expectations that the Fed will rein in its bond purchases soon.
Gold settled more than 1 percent higher, after earlier hitting its highest in more than two weeks, boosted by a tumbling dollar and disappointing U.S. manufacturing data.
Brent crude oil dipped briefly below $100 a barrel for the first time in a month on demand worries after Chinese factory data pointed to slowing momentum in the world's second-biggest oil consumer.
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.
Get the best of CNBC in your inbox
Despite a slowing economy and political uncertainty, Europe still presents opportunities, the chief of Tiffany & Co. said.
After a ho-hum performance for most of 2014, analysts believe that Japan's Nikkei 225 will see better days in the year ahead.
Putin may still be popular in Russia but his miscalculation could change that, said well-known economist Jim O'Neill.