EQUITIES

Shares in Asia-Pacific were mostly higher in Tuesday trade, with markets in Hong Kong and mainland China are closed for a holiday.

In Japan, the Nikkei 225 rose 0.09%, and in Australia, the S&P/ASX 200 advanced 0.25%. In Southeast Asia, Singapore’s Straits Times index climbed 0.34%.

South Korea’s KOSPI meanwhile edged fractionally lower, was down 0.06%.

Overnight on Wall Street, the Dow Jones Industrial Average gained 0.3%, to 34,921.88, and the S&P 500 climbed 0.81% to 4,582.64. The tech-heavy Nasdaq Composite outperformed, surging 1.9% to 14,532.55, boosted by mega cap tech and growth stocks and a surge in Twitter stock.

OIL

Oil prices rose on Tuesday as investors braced for the prospect of more Western sanctions on Russia following allegations of war crimes by Russian troops in Ukraine added to concerns about supply disruptions, while Iran nuclear talks stalled.

The European Union’s new sanctions on Russia are likely to include steel, luxury, jet fuel and more, one news portal reported. The bloc, however, remains divided over whether to extend those sanctions to energy imports.

Oil also gained support from a pause in talks in Vienna to revive the Iran nuclear deal, which would allow a lifting of sanctions on Iranian oil and could put more Iranian barrels into the market. Iran on Monday blamed the U.S. for the halt.

The international benchmark Brent crude futures up 0.70% to $108.73 per barrel. U.S. WIT futures were up 0.86%, to $104.57 a barrel at.

CURRENCIES

In the U.S. Treasury market, the benchmark U.S. 10-year Treasury yield was last at 2.399% and the 2-year/10-year yield curve remained inverted. The curve inversion is seen as a signal to some market watchers that a recession may follow in one to two years.

The greenback continued to regain its safe-haven currency appeal for the third straight session amid uncertainties surrounding the market, which saw the U.S. Dollar Index (DXY) rising to 99.009 points.

In light of the unsettling effects of the military conflict in Ukraine, along with mixed signals from the financial market, the demand for safe-haven currencies, especially the U.S. dollar, will likely continue to dominate the forex market sentiments.

Meanwhile, the Reserve Bank of Australia announced Tuesday its decision to keep the cash rate target unchanged at 0.1%. The Australian dollar surged to $0.7573, continuing to trek upward after yesterday’s jump from below $0.75 following that decision.

GOLD

Gold prices traded lower on Tuesday, following strength in the U.S. dollar on rising prospects of fresh sanctions on Russia and rate hike possibilities.

The spot gold edged 0.24% lower to $1,928.60 an ounce, while U.S. gold futures slipped 0.10% to $1,932.10.

ECONOMIC OUTLOOK

Asian stocks were higher on Tuesday, tracking the Wall Street performance in in a tech-heavy market rally, while remained concerned about the Ukraine crisis, which has led to a spike in commodity prices that has worsened the outlook for already high inflation.

Stocks rebounded in recent weeks after a rocky start to the year amid concerns about the Federal Reserve tightening monetary policy to fight inflation and the war in Ukraine.

Investors braced for the prospect of more Western sanctions on Russia following allegations of war crimes by Russian troops in Ukraine. The deaths in Bucha, outside Kyiv, drew pledges of further sanctions against Moscow from the West, possibly including some restrictions on the billions of dollars in energy that Europe still imports from Russia. The Kremlin denied accusations related to the murder of civilians.

Russia maintained gas flows through key pipeline routes into Europe, despite uncertainty over payment terms.