Equities and Futures Gained on Chinese Resolve to Audit Dispute; Crude Oil Dipped Below $100

Asian markets largely remained in positive after Chinese authorities announced willingness to change rules in an attempt to ease dispute with U.S. over audit issue of Chinese corporations listed in the U.S.

Chinese authorities are planning to modify a rule that restricts offshore-listed firms from sharing sensitive financial data with foreign regulators, Beijing said on Saturday. The move would pave path for U.S. authorities to gain access to audit reports of Chinese listed firm in the Wall Street.

Stocks in Mainland China was close on Monday while equities in Hong Kong gained sharply on the report closing up by 2.10%. South Korea, Thailand and Japan closed marginally higher while the MSCI Asian Index ex Japan is higher by 0.14%.

U.S. equities future contracts are edging higher while treasuries remained inverted stance ahed of Fed’s meeting minutes to be realized on Wednesday.

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.

After sold job report on Friday, the market expects Fed to give indication of raising half percentage point in May. 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.

Crude oil dipped sharply after Biden Administration announced a massive release of crude from strategic reserves to combat energy prices along  allies within the International Energy Agency will also tap stockpiles, with details expected this week.

The U.S. WTI is trading around $99 a barrel while Brent is trading around $104 a barrel.