EQUITIES
Shares in Asia-Pacific rose in Tuesday trade. Japanese stocks led gains regionally, with the Nikkei 225 jumping 1.58%, followed the S&P/ASX 200 in Australia at 1.13%.
Hong Kong’s broader Hang Seng index also climbed 1.13%. Shares of China Eastern Airlines in Hong Kong meanwhile fell after the carrier’s Boeing 737 passenger jet crashed in southern China on Monday. The shares dropped 6.50%.
Meanwhile, Hong Kong-listed shares of Chinese tech juggernaut Alibaba surged more than 4.8% after the firm announced earlier today of an upsizing of its share repurchase program from $15 billion to $25 billion.
The Shanghai composite in mainland China sat 0.14% higher, while South Korea’s KOSPI advanced 0.76%.
OIL
Oil futures extended gains on Tuesday as the potential for more supply disruptions weighed on the market. Some of European Union considering joining the U.S. in banning Russian oil, though some countries including Germany arguing that the bloc is too dependent on Russia's fossil fuels.
The attacks on Saudi oil facilities on the weekend also sent jitters through the market. Saudi Arabia has warned it would not bear responsibility for disruptions to global oil supply following attacks on its oil facilities by Iranian-aligned Houthis, causing a temporary decline in refinery output.
West Texas Intermediate futures were up $7 to $112.32 a barrel and Brent futures were up $1.80 to $118.19 a barrel. Both contracts had settled up more than 7% on Monday.
CURRENCIES
The yield on the benchmark 10-year Treasury note jumped and Treasuries extended losses after U.S. Federal Reserve Chairman Jerome Powell on Monday flagged a more aggressive tightening of monetary policy than previously anticipated.
The benchmark 10-year Treasury yields hit above 2.3% for the first time since May 2019, and last was at 2.322%. The dollar index rose 0.33% to 98.795 points.
GOLD
Gold prices held steady on Tuesday, stuck between higher U.S. yields and a ramp-up in risk-aversion sentiment.
Spot gold was flat at $1,935.80 per ounce, and the U.S. gold futures were up 0.30% at $1,935.20.
Spot silver rose 0.7% to $25.49 per ounce, platinum gained 0.1% to $1,045.60, and palladium rose 1.62% to $2,578.50 per ounce.
ECONOMIC OUTLOOK
Asian equities traded higher on Tuesday as investors braced for aggressive U.S. rate hikes and continue to evaluate the potential economic ramifications of the ongoing war in Ukraine. Oil prices climbed anew as supplies remained tight.
U.S. Fed Chairman Jerome Powell had sparked a bond rout overnight after he told the National Association for Business Economics the U.S. central bank was prepared to do what it takes to combat inflation and that bigger-than-usual hikes would be deployed if needed. Those comments came less than a week after the central bank raised interest rates for the first time in more than three years.
Meanwhile, a lack of progress in the Russia-Ukraine peace negotiations continued to weigh on sentiment. Risk-off sentiments prevailed as the military conflict in Ukraine had yet to recede with Russia continuing to attack Kyiv, Odesa and other locations, while the Ukrainian government refused to surrender the embattled port city of Mariupol where intense fighting continued.
