EQUITIES

Stocks across Asia-Pacific were traded mostly higher on Tuesday, except for the mainland China stocks that decline following a lockdown to contain surging COVID-19 cases. The Shanghai composite slipped 0.43%.

Elsewhere, Hong Kong’s Hang Seng index added 0.52%, as casino and tech stocks rose. Among the biggest gainers was JD Health, which soared 16%. In Japan, the Nikkei 225 was 0.45% higher, and in South Korea, the KOSPI advanced 0.28%. Australia S&P/ASX 200 rose 0.78% on stronger than expected retail sales data.

Wall Street on Monday gained in a tech-heavy market rally. The Dow Jones Industrial Average rose 0.27%, to 34,955.89, the S&P 500 gained 0.71%, to 4,575.52 and the Nasdaq Composite added 1.31%, to 14,354.90.

OIL

Oil prices extend its decline on Tuesday as market expects a weaker fuel demand in China after a surge in COVID-19 infections prompted authorities to impose lockdown measures. Shanghai accounts for 4% of China’s total oil consumption, and markets are fearing the outbreak could ultimately put under threat the 15.5 million bpd of oil the country consumes. Its financial hub of Shanghai reported a record 4,381 asymptomatic COVID-19 cases and 96 symptomatic cases for March 28.

Prices also weighed as Ukraine and Russia headed for peace talks. Investors are watching the talks closely on any easing of sanctions or avoidance on Russian oil by the West. A successful ceasefire could also raise the prospect of reviving an Iranian nuclear deal.

U.S. WTI crude fell to $104.66 per barrel and Brent was at $111.19 on the day. The prices slumped overnight, falling about 7% for both contracts.

CURRENCIES

Yields on U.S. benchmark 10-year treasury notes were steady at 2.468%, little changed on the day due to a pause in the sharp sell-off seen in recent days, though still hovered close to its near three-year highs.

Meanwhile the U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.026 - held firm near a three-week high hit in the previous session.

The Japanese yen continued to weaken, pushed to a seven-year low against the dollar as the Bank of Japan stepped into the market to keep local yields near zero.

Bitcoin meanwhile broke past the key level of $45,000 overnight and erased its losses for 2022, jumping as high as $48,201. It was last traded at $47,499 on Tuesday. Ether, the world's second largest cryptocurrency, was at $3,387.    

GOLD

Gold prices were flat on Tuesday as the dollar held firm and yields climbed, while investors refrained from making big bets ahead of Russia-Ukraine peace talks starting later in the day.

Spot gold was flat at $1,923.30 per ounce, and U.S. gold futures were down 0.8% at $1,928.40. Spot silver slipped 0.7% at $25.02 per ounce, platinum was down 0.4% to $989.10, and palladium rose 0.2% to $2,247.00.

ECONOMIC OUTLOOK

Asian stocks were higher on Tuesday, tracking the Wall Street performance in in a tech-heavy market rally, while awaited the Ukraine-Russia ceasefire talk set to begin later in the day.

Talks between Ukraine and Russia officials will commence on Tuesday in Istanbul with hope that some possible resolution between the two nations can be achieved in the near term. Ukraine said its top objective at the first face-to-face talks with Russia in more than two weeks, is to secure a ceasefire, although both it and the U.S. were sceptical of a major breakthrough.

Japanese shares gains as the Bank of Japan defended its ultra-easy stance. The BoJ vowed to keep monetary policy ultra-loose, offering to buy unlimited government bonds for the first four days of this week, to prevent yields in Japan from rising as they are doing elsewhere following U.S. Federal Reserve's moves to hike interest rates in the face of mounting inflationary pressures.

Chinese shares and oil prices slid on fears of lower demand from China as Shanghai applied a "zero-COVID" strategy. Shanghai's two-stage lockdown over nine days is expected to hit fuel demand in China, the world's largest oil importer. The country's financial hub accounts for about 4% of China's oil consumption.