EQUITIES
Shares in Asia-Pacific were mixed in Thursday trade, as investors await the release of U.S. consumer inflation data.
The Hang Seng index in Hong Kong slipped 0.48%, and mainland Chinese stocks were also lower, with the Shanghai composite was down 0.10%.
Japan's blue-chip Nikkei started the day almost 1% higher before beginning a steady slide that took it close to negative territory. It later rebounded to be 0.31% higher.
Elsewhere, the South Korea KOSPI rose 0.16%, the Australia’s S&P/ASX 200 advanced 0.23%, and FTSE Straits Times Index in Singapore was flat above the flatline.
The S&P BSE Sensex Index in India was slightly lower ahead of the Reserve Bank of India interest rate decision announcement later today.
Overnight on Wall Street, the Dow Jones Industrial Average rose 0.86% to end at 35,768.06 points, while the S&P 500 gained 1.45% to 4,587.18. The Nasdaq Composite outperformed, surging 2.08% to 14,490.37.
OIL
Oil prices were steady on Thursday, as investors digesting the data of unexpected drop in U.S. crude inventories and awaited the outcome of U.S.-Iran nuclear talks.
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 lift U.S. sanctions on Iranian oil to add crude supplies quickly to global markets and ease supply tightness.
A big drawdown in U.S. inventories underscored the ongoing tightness in the market. U.S. crude inventories fell 4.8 million barrels in the week to Feb. 4, dropping to 410.4 million barrels - their lowest for commercial inventories since October 2018, report by EIA shows.
The Brent now traded at $91.47 per barrel, and the U.S. crude futures traded at $89.62 per barrel.
Overnight, Brent futures ends at $91.55 a barrel, while the WTI crude oil prices closed to $89.66 per barrel.
CURRENCIES
World bond yields continued to ease from multi-year highs and the dollar trod water ahead of the closely watched U.S. inflation report due later in the day that should offer new clues on the pace of U.S. interest rate hikes.
Yields on U.S. benchmark 10-year notes were at 1.932% on Thursday, slipped from a near 2-1/2-year peak on Tuesday. Its German counterpart also retreated from a three-year high.
The dollar index was steady at 95.540.
In cryptocurrencies, bitcoin was steady around $43,800 just off Tuesday's five-year peak of $45,501.
GOLD
The combination of a soft dollar and lower bond yields offered support to the safe-haven metal ahead of U.S. inflation data.
Spot gold was steady at $1,834.60 per ounce, hovering close to Wednesday's two-week high. U.S. gold futures fell 0.10% to $1,834.90.
Silver fell 0.24% to $23.28 per ounce, platinum was also down 0.33% at $1,034.00, while palladium slipped to $2,278.00.
ECONOMIC OUTLOOK
Asian equities were mixed on Thursday as investors took a more cautious posture amid uncertainties around the outlook for inflation and interest rates.
Investors will watch consumer price data on Thursday for clues on the Federal Reserve's plans to hike interest rates. An unexpectedly strong jobs report last week raised concerns of a more aggressive move by the central bank. Inflation is forecast at a four-decade high of 7.3%.
Barring any big surprises, Thursday's U.S. CPI should cement expectations the Federal Reserve will raise rates next month, with a strong print offering further support to those tipping a larger 50-basis point rise.
Investors also took comfort in positive news headlines over recent days suggesting tensions between the West and Russia over Ukraine may be easing and a string of upbeat earnings lifted sentiment towards risk assets. Although according to the Pentagon, Russia has increased military capabilities along its border with Ukraine and in Belarus.
