BEIJING, Oct 12 (Reuters) – China will persist with its COVID-19 policies to guard against new coronavirus strains and the risks they bring, the official newspaper of the Communist Party warned in a commentary for the third straight day, crushing hopes of any near-term easing.

“Lying flat is not advisable, and to win (the COVID battle) while lying flat is not possible,” People’s Daily wrote on Wednesday, referring to a phrase in China that denotes doing nothing.

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Asia Stumbles As China COVID, Sterling Wobbles Shake Sentiment

SINGAPORE, Oct 12 (Reuters) – Asian stocks wallowed at two-year lows on Wednesday, weighed by signs China had no immediate plans to ease strict COVID curbs while an unrelenting dollar rally and wobbles in the U.K. bond market and pound shook global investor sentiment.

After a torrid overnight session, sterling emerged from a two-week low, helped by a report the Bank of England (BOE) was prepared to extend its bond-buying programme beyond Friday, having previously spooked markets by threatening to withdraw support this week.

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EU Countries Seek Way Out Of Impasse Over Gas Price Caps

BRUSSELS, Oct 12 (Reuters) – The question of how, when and whether to cap gas prices is set to dominate another meeting of European Union countries on Wednesday, as they pursue a joint plan to target high gas prices – a compromise that has eluded them for weeks.

The 27-country EU is plotting its next move to tame soaring energy prices and shield consumers from surging bills, as Europe heads into a winter of scarce Russian gas, a cost-of-living crisis and the looming threat of recession.

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Morning Bid: The Next Three Days

A look at the day ahead in European and global markets from Ankur Banerjee

Remember that 2010 movie starring Russell Crowe and Elizabeth Banks with a nail-biting end? Well, the Bank of England’s Andrew Bailey has crowed, sort of making clear the Liz Truss government can’t bank on it defending markets from the fallout of an ill-conceived economic revival plan for more than three days.

“You’ve got three days left now. You’ve got to get this done,” Bailey said on Tuesday, referring to the pension funds.

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Japan Warns Against Yen Sell-off, Eyes Intervention

TOKYO, Oct 12 (Reuters) – Japanese policymakers kept up their warnings against investors selling off the Japanese currency as the dollar rose to a fresh 24-year high against the yen on Wednesday, raising speculation about a second round of intervention.

The U.S. currency rose to 146.35 yen , a level not seen since August 1998 during the Asian financial crisis, moving above levels that triggered intervention by Japanese authorities last month to stem excessive yen weakening.

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