EQUITIES
Shares in Asia-Pacific rose in Wednesday trade, with stocks in Hong Kong leading gains regionally.
The Hang Seng index in Hong Kong soared 1.97% as Chinese tech stocks bounced back from their Tuesday losses. Mainland Chinese stocks also rose, with the Shanghai composite up 0.40%.
In Japan, the Nikkei 225 gained 1.04%, and in South Korea, the KOSPI advanced 0.95%. Elsewhere, the S&P/ASX 200 in Australia climbed 0.96%. The FTSE Straits Times Index in Singapore added 0.14%.
OIL
Oil regained some ground on Wednesday following two sessions of losses after industry data showed an unexpected drop in U.S. crude and fuel stocks, offsetting optimism around talks with Iran.
U.S. crude, gasoline and distillate stocks fell last week, according to market sources citing API figures on Tuesday. Crude inventories fell 2 million barrels, against expectations of a 400,000-barrel increase. More data from the U.S. EIA will be available at 1530 GMT today.
Resumption of talks between the U.S. and Iran could revive an international nuclear agreement and allow more oil exports from the OPEC producer. A deal could return more than 1 million bpd of Iranian oil to the market, boosting global supply by about 1%.
The Brent now traded at $91.20 per barrel, and the U.S. crude futures traded at $89.74 per barrel.
Brent and WTI slid about 2% overnight, down for a second straight session. The Brent futures ends at $90.78 a barrel, while the WTI crude oil prices closed to $89.36 per barrel.
CURRENCIES
The yield on 10-year Treasury notes was 1.943% on Wednesday, held below the November 2019 high reached on Tuesday at 1.97%. The two-year was 1.3435%, just below its highest since March 2020.
The dollar index, which gauges the greenback against six major peers, was steady at 95.527, after bouncing off a 2-1/2-week low of 95.136 reached Friday. It touched the highest since June 2020 at 97.441 at the end of last month.
Russia's rouble reached a one-month high after talks between President Vladimir Putin and President Emmanuel Macron kept up hopes that war in Ukraine will be avoided.
GOLD
Gold prices hovered near two-week high touched yesterday, buoyed by mounting inflation concerns and Russia-Ukraine tensions, although expectations for a U.S. interest rate hike limited gain.
Spot gold was up 0.1% at $1,827.30 per ounce, holding near the previous session's high of $1,828.68, the highest level since Jan 26.
U.S. gold futures also edged 0.1% higher to $1,828.50.
Among other metals, silver rose 0.4% to $23.30 per ounce, its highest since Jan 27. Platinum fell 0.32% to $1,033.00 and palladium was down 1% at $2,231.50.
ECONOMIC OUTLOOK
Asian shares advanced on Wednesday with tech stocks particularly catching a lift following a strong session on Wall Street, while U.S. treasury yields held near multi-year highs ahead of closely watched inflation data this week.
Investors await the release of U.S. consumer inflation data expected Thursday for clues on how the Federal Reserve could react to the rising price pressures. Expectations are for a 7.3% annual rise after robust labour data last week boosted expectations of faster policy tightening by the Fed. Barring any big surprises, the CPI should cement expectations the Fed will raise interest rates next month, with a strong print offering further support to those tipping a larger 50 basis point rise.
Banking sector advanced as a jump in Treasury yields supported by the prospect of higher U.S interest rates.
Energy sector eased as investors cautious of the resumption of talks between the U.S. and Iran could revive an international nuclear agreement and allow more oil exports from the OPEC producer. Upbeat comments from French President Emmanuel Macron about his meeting with Russian President Vladimir Putin over the Ukraine crisis also dented oil prices.
