In Asian Equity Markets stocks were mostly up on Tuesday morning, with U.S. and European equity futures falling. Bonds were under pressure as U.S. Federal Reserve Chairman Jerome Powell adopted a more hawkish tone on monetary policy. Japan’s Nikkei 225 jumped 1.63 percent, with the market reopening after a holiday. South Korea’s KOSPI gained 0.66 percent and in Australia, the ASX 200 rose 1.18 percent. Hong Kong’s Hang Seng Index rose 0.64 percent. China’s Shanghai Composite edged up 0.15 percent while the Shenzhen Component fell 0.81 percent.

In Currency Markets the dollar was buttressed by new bets on U.S. rate hikes on Tuesday, while investors unloaded yen and sent it spearing below the psychological 120 level as the Bank of Japan looks increasingly isolated in its dovish policy stance. The yen fell 0.8 percent and hit a six-year low of 120.46 in the Tokyo afternoon. Yen crosses also suffered, with the euro making a five-week high of 132.33, while the Japanese currency slumped to a four-year low on the Aussie and a 6-1/2 year low on the Swiss franc. The euro was down 0.2 percent to $1.0988. The Aussie and kiwi each fell 0.1 percent.

In US Equity Markets stocks closed lower on Monday, with stocks extending their slide after U.S. Federal Reserve Chairman Jerome Powell hinted at a more aggressive tightening of monetary policy than previously anticipated, adding to uncertainties regarding the Russian invasion of Ukraine. The Dow fell 0.58 percent, to 34,552.99, the S&P 500 lost 0.04 percent, to 4,461.18 and the Nasdaq Composite fell 0.4 percent, to 13,838.46. Shares of Boeing Co slid 3.6 percent after one of its 737-800 aircraft operated by China Eastern Airlines crashed in southern China with no apparent survivors.

In Commodities Markets oil prices jumped more than $3 on Monday, with Brent crude climbing above $111 a barrel, as European Union nations considered joining the United States in a Russian oil embargo and after a weekend attack on Saudi oil facilities. Brent crude futures were up 3.2 percent, at $111.33 a barrel. U.S. WTI crude futures rose 3.5 percent, to $108.35, extending a 1.7 percent jump last Friday. Spot gold rose 0.5 percent to $1,931.16 per ounce. Spot silver rose 0.8 percent to $25.15, platinum was up 1.7 percent at $1,038.98, while palladium rose 3.2 percent to $2,569.68.

In European Equity Markets stocks were subdued at the close on Monday after choppy trading, as the rise in energy stocks was offset by tinvestor concerns around fighting in Ukraine. The pan-European STOXX 600 was flat after posting its biggest weekly percentage gain since November 2020 on Friday. Oil exporters-heavy London’s FTSE 100 led gains among its continental peers, rising 0.5 percent, as BP and Shell gained 4.1 percent each. Meanwhile, France’s blue-chip index and Germany’s DAX fell 0.6 percent each.

In Bond Markets U.S. Treasury yields jumped on Monday after Federal Reserve Chair Jerome Powell indicated the U.S. central bank would raise interest rates by bigger-than-usual amounts if it felt such moves were needed to bring down inflation that was running “much too high.” The yield on benchmark 10-year Treasury notes rose 13.4 basis points to 2.282 percent, up from 2.25 percent before Powell began speaking, while two-year notes added 13.3 basis points to yield 2.090 percent. The yield on the 30-year Treasury bond was up 8.5 basis points to 2.503 percent.