Asian Equities Climbed as China Eases Audit Dispute; Treasuries Dropped Further

Asian equites rallies after China’s move to ease dispute over audits of Chinese securities listed in the United States.

Equites in the Mainland climbed sharply while equities in Hong Kong, South Korea and Japan gained marginally. The MSCI Broad Market Asian Index ex Japan climbed by 0.14%.

Chinese authorities eased dispute with U.S. over audits by giving them full access for listings of Chinese companies listed in the Wall Street exchanges.

U.S. futures- S&p 500 and Nasdaq 100 dipped as traders weigh prospect of  fresh new sanction on Russia. Some European Union governments are pushing for new penalties following reports that Russian troops executed unarmed civilians in Ukrainian towns.

The U.S. treasury yield curve remains inverted singling that economic growth will slow as the Fed raised rates. The two-year U.S. yield has exceeded the 30-year for the first time since 2007, joining inversions on other parts of the curve.

The Fed minutes later this week will shape views on the odds of a half percentage-point rate increase in May and provide key details on how the central bank will shrink its balance sheet.

New York Fed President John Williams said Saturday a “sequence of steps” can get rates back to more normal levels. Mary Daly, president of the San Francisco Fed, said in an interview published Sunday that rising inflation and a tight labor market strengthen the case for a half-point May hike.

A strong job report added to the case for rates hike over half percentage point.  The U.S. added 431,000 jobs in March while the unemployment rate fell to 3.6%, near its pre-pandemic low.

Crude oil dipped below $100, sparked by U.S. announcement of unprecedented release of strategic reserve to tame down energy costs. Worsening COVID-19 outbreak and lockdowns in China also poses threat to demand.