NEW YORK, Dec 28 Reuters Equity indexes closed lower on Wednesday while U.S. Treasury yields rose as investors eyed 2023 with caution and weighed hopes for an economic boost from China39;s relaxed COVID19 restrictions against concerns about rising infections there.

The yield on benchmark U.S. 10year Treasuries rose for a third straight day, reversing an earlier decline as investors watched China39;s reopening and also placed bets on the Federal Reserve39;s future interest rate hiking path.

In currencies, the dollar hit a oneweek high against the yen with a boost from rising Treasury yields and sterling lost ground against the greenback after rallying earlier in the day.

The Nasdaq closed down 1.35, hitting a new bearmarket closing low for the technologyheavy index, as investors shied away from growth stocks and riskier bets. Wednesday39;s loss marked a drop of more than 36 from Nasdaq39;s November record closing high.

MSCI39;s broadest index of global stocks was down 0.92 in the thirdlast trading day of a brutal year for equities. The global index is on course to end 2022 down more than 20, for its biggest annual decline since 2008 during the financial crisis.

Investors were still digesting China39;s announcement on Monday of the end to quarantine requirements for inbound travellers on Jan. 8. China39;s health system has come under heavy stress since Beijing lifted domestic restrictions. But strategists at JP Morgan forecast a likely infection peak during the Lunar…