Asian stocks fall as Ukraine war sparks inflation fears oil rises

FILE PHOTO: A model of a 3D printed oil barrel is shown in front of the stock chart displayed in this image, taken December 1, 2021. REUTERS / Dado Ruvic / Illustration

March 24, 2022

By Stella Qiu and Kevin Buckland

BEIJING (Reuters) – Asian stocks fell on Thursday as US bond sell-offs stalled and oil prices rose as investors and traders weighed on the latest developments in the Ukraine war and more aggressive comments by US bank officials. USA.

MSCI Broader Index for Asia-Pacific shares outside Japan fell 0.6%. Japan’s Nikkei fell more than 1% on Thursday morning after hitting a two-month high in the previous session.

China’s markets opened lower, with Hong Kong’s Hang Seng index falling 0.9% and the mainland bluechip index falling 0.7%. Shares of Tencent Holdings fell 4.6% after recording the slowest rise in sales ever.

US President Joe Biden arrived in Brussels for a series of summit talks on the Ukraine war, with Biden announcing a package of US-related sanctions on Russia to politicians and oligarchs on Thursday.

Oil prices remained stable. Russian President Vladimir Putin said on Wednesday that Moscow, which calls its actions in Ukraine a “special operation”, would demand payment in rubles for gas sold to “unfriendly” countries.

Brent futures rose about 45 cents, or 0.4%, to $ 122.05 a barrel, and West Texas Intermediate futures rose about 15 cents, or 0.2%, to $ 115.07. the barrel. [OR/]

The bond market, meanwhile, came to a halt as the 10-year government bond yield returned to 2.3098% in Tokyo trading, after falling from a three-year high of 2.4170% overnight.

The two-year yield, which is more sensitive to traders’ expectations for the Fed’s interest rate, stood at 2.1233%, up from a three-year high of 2.2020% on Tuesday.

Federal Reserve policymakers indicated Wednesday that they are ready to take more aggressive action to reduce unacceptably high inflation, including a possible half-year rate hike at the next policy meeting in May.

Major US stock indexes fell more than 1% on Wednesday. The Dow Jones Industrial Average fell 448.96 points or 1.3% to 34,358.5. The S&P 500 fell 55.41 points or 1.2% to 4,456.2. and the Nasdaq Composite fell 186.21 points, or 1.3%, to 13,922.60.

“Stocks overturned part of their recent rally as bond yields fell, in a move that could be just a simple recovery after a rapid rally over the past 10 days,” said Kyle Rodda, a market analyst at IG.

“Nevertheless, it is a relatively volatile market, (which) suggests that these rapid movements in equities should be handled with caution.”

Foreign exchange markets remained stable on Thursday with the Japanese yen showing large losses. It had hit a six-year low of 121.41 on Wednesday as rising US yields and a deteriorating trade balance absorbed cash from Japan.

The euro hovered at $ 1.0988 and the Australian dollar took a breather after several days of high gains. The Aussie traded slightly lower at $ 0.74955, staying close to the almost five-month high of $ 0.75070 on Wednesday.

Gold was slightly lower, trading at $ 1942.9 an ounce. [GOL/]

(Edited by Kenneth Maxwell)

Asian stocks fall as Ukraine war sparks inflation fears oil rises

Source link Asian stocks fall as Ukraine war sparks inflation fears oil rises

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