The world's focus remains on China and its easing of Covid-19 policies as investors weigh the outlook for 2023.

For now the Chairman of Great Hill Capital LLC, Thomas Hayes, sees the reopening of China as beneficial to the United States (US) economy but risks an increase in infection cases.

China previously ended the quarantine period for tourists entering its borders starting January 8 when the Great Wall country's health system was under pressure.

The risk of increased infection cases coupled with low liquidity concerns and the tax loss factor have sent equity markets crashing on the eve of the new year.

Voya Investment Management's chief asset strategist, Amit Sinha, commented that equities experienced a decline throughout December with negative sentiment and momentum 'triggering selling'.

The sentiment may be attributed to the uncertainty of the prospect of interest rate hikes in 2023 and the risk of a recession from that move.

At yesterday's close, the Dow Jones Industrial fell 1.1% at 32,875.71, the S&P 500 lost 1.20% at 3,783.22 and the Nasdaq Composite plunged 1.35% at 10,213.29, its lowest level since July 2020.

Asian trading saw Australia's S&P/ASX 200 down 0.88%, Japan's Nikkei 225 down 0.94%, Topix down 0.86% and South Korea's Kospi down 0.57%.

Meanwhile, the dollar strengthened again with the greenback up 0.202% while the benchmark 10-year note jumped 3.885% from 3.858% and the 30-year bond yield rose 3.9743% while the 2-year note fell 4.3594% from 4.368%.