Asian stocks traded mixed this morning and the Japanese yen continued its slide to hover near a six-year low amid an increase in bond yields globally after St. Louis Federal Reserve president James Bullard on Friday called for a dramatic increase in the Fed’s overnight lending rate to more than 3 percent this year, saying the U.S. central bank risks losing its credibility on its inflation target.
Fed Chair Jerome Powell will speak at the NABE conference today and BIS panel on Wednesday, which could provide more clues of the central bank’s stance on monetary policy.
Meanwhile, as fighting rages in Mariupol, investors clung to hopes for an eventual peace deal. Turkey’s foreign minister said on Sunday that Russia and Ukraine were nearing agreement on “critical” issues and he was hopeful for a ceasefire.
U.S. President Joe Biden has added a stop in Poland to his upcoming trip to Europe for urgent talks with NATO and European allies. Ukraine will soon receive U.S. weapons including Javelin and Stinger missiles.
Oil prices climbed round 3 percent in Asian trading while gold traded flat after touching its lowest since February 28 at $1,894.70 last week.
Markets in Japan remain closed for a holiday. Chinese shares were little changed and Hong Kong’s Hang Seng index was up 0.2 percent as investors wait on further details of possible stimulus amid mounting external risks to an already slowing economy.
Earlier today, the People’s Bank of China kept its benchmark interest rate for corporate and household lending unchanged.
Australian shares were marginally lower as the country imposed an immediate ban on exports of alumina and aluminum ores, including bauxite, to Russia. New Zealand’s NZX-50 index and South Korea’s Kospi average both fell around 0.3 percent.
U.S. stocks finished higher for the fourth straight session on Friday to cap off the strongest week since November 2020, as President Joe Biden spoke with Chinese President Xi Jinping about the Russia-Ukraine war.
Biden reportedly described the implications and consequences if China provides material support to Russia. Xi told Biden that the United States and China each had an obligation to promote peace.
The Dow rose 0.8 percent and the S&P 500 added 1.2 percent while the tech-heavy Nasdaq Composite surged 2.1 percent.
European stocks advanced on Friday despite peace talks between Russia and Ukraine failing to result in any progress.
The pan European Stoxx 600 climbed 0.9 percent. The German DAX edged up 0.2 percent, France’s CAC 40 index inched up 0.1 percent and the U.K.’s FTSE 100 rose 0.3 percent.
Market Analysis
Asian Shares Mostly Lower As War Rages On
2022-03-21 03:31:06
