EQUITIES
Shares in Asia-Pacific were mixed in Wednesday trade, as the Russia-Ukraine war continues to keep investors on edge.
In Japan, the Nikkei 225 gained 0.35% while the S&P/ASX 200 in Australia jumped 0.93%. Over in Southeast Asia, Singapore’s Straits Times index gained 0.95%.
The Shanghai composite in mainland China edged 1.07% lower and in Hong Kong, the Hang Seng index slipped 2.20%
Markets in South Korea are closed on Wednesday due to the country’s presidential election.
OIL
Oil prices rose on Wednesday as the U.S. President Joe Biden imposed an immediate ban on Russian oil and other energy imports while Britain said it would phase out Russian oil imports through the end of 2022, which raised concerns of tighter global supply.
Behind the rally was also expectations that an imminent return of Iranian crude to global markets was unlikely, as talks on Iran's nuclear programme have slowed down.
Brent crude futures were up to $130.89 a barrel, after jumping almost 4% in the previous day.
U.S. WTI crude futures meanwhile were up to $125.94 a barrel, after surging 3.6% on Tuesday.
Oil prices jumped on Monday to their highest levels since July 2008, with Brent hitting $139.13 a barrel and WTI $130.50.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.0542 — having traded in a range between 98.7 and 99.4 so far this week.
U.S. Treasury yields edged down, with benchmark 10-year notes last yielding 1.859%, down from 1.871% late on Tuesday. The 2-year note last yielded 1.6129%, down from 1.629%.
GOLD
Gold extended its rally towards a record high, on mounting fears around the Russia-Ukraine crisis. Prices of spot gold rose 0.37% to $2,060.10 an ounce. U.S. gold futures added 1.05% to $2,064.80.
ECONOMIC OUTLOOK
Asian stocks regained their footing on Wednesday, recovering partially from losses earlier in the week as investors continue to evaluate the potential economic ramifications of the ongoing war in Ukraine, and assessed the impact of a new U.S. ban on Russian oil.
The rally in oil and other commodities has heightened investor fears about global inflation. Data for the U.S. this week is expected to show the U.S. consumer price index climbed a stratospheric 7.9% on a year-on-year basis in February, up from 7.5% in January.
Investors are also carefully watching a ECB policy meeting on Thursday. The prospect of stagflation has prompted economists to suggest policymakers might delay rate hikes until late in the year.
