EQUITIES
Shares in Asia-Pacific were on a positive trajectory on Tuesday trade, as investors monitored oil prices and continued to assess the outlook for U.S. Federal Reserve monetary policy.
Shares in Japan led gains regionally, with the Nikkei 225 rising nearly 3%.
In Hong Kong, the Hang Seng index surged 1.73%. Shares of Xiaomi soared 6.06% after the firm announced a 21.4% YoY rise in its Q4 revenue. It also announced plans to repurchase shares in the open market “from time to time” at a maximum aggregate price of 10 billion Hong Kong dollars ($1.28 billion). Shares of Chinese tech giant Tencent also jumped 2.68%, ahead of its Q4 and annual results announcement expected later today.
Shanghai composite in the mainland China meanwhile bucked the overall trend, erasing 0.14% to 3,355.32.
Elsewhere, South Korea’s KOSPI gained 0.50%, Singapore’s FTSE Straits Times Index rose 0.56%, and over in Australia, the S&P/ASX 200 climbed 0.60%.
OIL
Oil prices rose on Wednesday, erasing losses from the previous session as a reported drop in U.S. crude inventories increased concerns about tight global supplies amid the hit to Russian exports from economic sanctions.
The market remains on edge over the prospect of further sanctions on Russia as the U.S. President Joe Biden is set to meet with European leaders on Thursday in Brussels, including an emergency meeting of NATO.
The latest data from the American Petroleum Institute industry group showed crude stocks fell by 4.3 million barrels for the week ended March 18, according to market sources, which defied analysts' forecasts for an increase. Official US inventory data is due from the Energy Information Administration on Wednesday.
Brent crude futures climbed 2.33%, to $117.25 a barrel, after falling 14 cents in the previous session. U.S. WTI crude futures rose 1.98%, to $110.82 a barrel, after losing 36 cents on Tuesday.
Prices dipped on Tuesday as the European Union seems unlikely to impose an immediate oil embargo on Russia.
CURRENCIES
Bond markets extended their retreat as investors braced for the Federal Reserve to take an even more aggressive approach to taming inflation. The yield on U.S. benchmark 10-year yields rose to 2.414%, its fresh highs since May 2019, while the two-year Treasury yields are up 76 bps in March.
The dollar index, with measures the greenback against six major peers, was at 98.456.
In cryptocurrency markets, bitcoin was around $42,000, holding on to its overnight gains, while ether was just under $3,000.
GOLD
Gold prices held steady on Wednesday, stuck between higher U.S. yields and a ramp-up in risk-aversion sentiment.
Spot gold was flat at $1,921.20 per ounce, and the U.S. gold futures slipped marginally to $1,921.00.
Palladium rose 3.6% to $2,566.00 per ounce, spot silver rose 0.1% at $24.93 per ounce, while platinum shed 0.03% to $1,024.80.
ECONOMIC OUTLOOK
Asian equities traded higher on Wednesday as bourses continue to assess the outlook for U.S. Federal Reserve policy. The Ukraine conflict's kept oil and commodity prices high.
Bond markets extended their retreat as investors braced for the Federal Reserve to take an even more aggressive approach to taming inflation. The tumbling bond markets flowed cash back toward big tech, financial and other big growth names.
U.S. Federal Reserve Chairman Jerome Powell said earlier this week that the central bank is set to take tough action on inflation, with traders now betting the Fed will drive up interest rates even faster than expected just last week.
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.
