EQUITIES
Asia-Pacific stocks were higher in Thursday trade. The Shanghai composite in mainland China was up 0.73% while in Hong Kong, the Hang Seng index gained 0.37%.
Elsewhere, the Nikkei 225 in Japan climbed 1.12%, and in Australia, the S&P/ASX 200 rose 0.61%.
South Korea’s KOSPI and the Straits Times index in Singapore both struggled for gains as they traded close to flat.
Markets in India are closed on Thursday for a holiday.
OIL
Oil futures were down slightly, as traders weighed a larger-than-expected build in U.S. oil stocks against tightening global supply.
Despite signals that global supply disruption will persist, oil stocks in the U.S. rose by more than 9 million barrels last week, the U.S. Energy Information Administration said on Wednesday, driven in part by releases from the nation's strategic reserves. U.S. gasoline stocks fell 3.6 million barrels last week, far above anticipated levels, and distillate inventories also declined.
Worries of tight supply continues after Russian on Tuesday said that peace talks with Ukraine had hit a dead end.
Brent futures were down 0.40%, at $108.44 a barrel, and U.S. West Texas Intermediate futures were off 0.54%, to $103.62 a barrel. Both contracts on Wednesday ends the trading session more than 3% higher, on top of 6% surge a day earlier.
CURRENCIES
Yields on U.S. Treasuries steadied in Asian trade. The yield on 10-year Treasury notes was at 2.712%, compared to an over three-year peak of 2.836%, before the inflation figures released on Tuesday. The two-year yield was 2.3727%, compared with a close of 2.3645% the previous day.
Pause in the yield’s march put the dollar was on the back foot on Thursday, slipped slightly to 99.673 points.
The Bank of Korea announced Thursday a 25-bp hike in its base rate to 1.5%, and following the decision, the Korean won traded at 1,224.66 per dollar, still stronger than levels above 1,232 seen against the greenback earlier this week.
In Southeast Asia, the Monetary Authority of Singapore on Thursday also announced a tightening of monetary policy, its third in the last six months. The Singapore dollar strengthened to 1.354 per dollar following the MAS announcement.
GOLD
Gold was flat on Thursday, but prices were set for a second consecutive weekly gain as the Ukraine crisis and broadening inflationary pressures lifted the safe-haven metal's appeal.
Spot gold was little changed at $1,973.10 per ounce, and U.S. gold futures were down 0.38% at $1,977.10. The metal has gained about 1.7% so far in the week. Most markets will be closed on Friday for a holiday.
Spot silver rose 0.3% to $25.79 per ounce, platinum was up 0.2% at $987.97 and palladium rose 1.8% to $2,357.61.
ECONOMIC OUTLOOK
Asian shares tracked Wall Street higher on Thursday, while U.S. Treasury yields steadied and dollar retreated, as latest U.S. data raised hopes that inflation may be close to peaking, though several major central banks raised rates aggressively.
The Bank of Korea today announced a 25-basis points hike in its base rate to 1.5%, while the Monetary Authority of Singapore also announced a tightening of monetary policy, its third in the last six months.
Traders now look forward to the European Central Bank meeting later in the day to see whether it is in the same, more hawkish mood as global peers.
Geopolitical risks could again cap market optimism. Ukraine warned on Wednesday that Russia was ramping up efforts in the South and East as it seeks full control of Mariupol, while Western governments committed more military help to bolster Kyiv. U.S. President Joe Biden on Wednesday announced an additional $800 million in military assistance to Ukraine.
Wells Fargo, Goldman Sachs, Morgan Stanley, and Citigroup are among companies that will post their Q1 earnings on Thursday. Investors will be looking to monitor how banks weathered macro headwinds during the quarter, particularly a flattening yield curve. U.S. Bancorp, PNC Financial and Ally Financial are also scheduled to report earnings Thursday.
