Asian equities climbed on Tuesday as slump in oil and the prospect of more cease-fire talks between Russia and Ukraine helped boost sentiment in the market.
Equities in China, Japan, Hong Kong and South Korea rose. The MSCI Asian Index ex Japan climbed moderately by 0.02%.
The U.S. 10-year treasury yield was steady around 2.46% . Inversions along the bond curve, where some short-term rates exceed longer tenor yields, point to concerns about a looming economic downturn as the Federal Reserve hikes interest rates to quell high inflation.
“It makes sense to think about those growth risks but more form a slowdown perspective and not a recession perspective for this year,” Julia Wang, JPMorgan Private Bank global market strategist, said on Bloomberg Television.
For Asia, Wang said there are two tailwinds in the next couple of months — Fed hike expectations are now starting to be priced in, and Chinese policy makers have pledged to support markets and economic growth.
In the latest geopolitical developments, Ukraine said its “minimum” goal from talks with Russian negotiators starting on Tuesday in Turkey will be an improvement in the immediate humanitarian situation.
Crude oil extended loss with WTI trading around $104 a barrel and Brent trading around $110 a barrel.