In Asian Equity Markets stocks advanced on Wednesday with tech stocks particularly catching a lift following a strong session on Wall Street, while U.S. treasury yields held near multi-year highs ahead of closely watched inflation data this week. MSCI’s broadest index of Asia-Pacific shares outside Japan added 1 percent to its highest in two weeks, helped by a 3 percent gain in Hong Kong-listed tech stocks. Japan’s Nikkei gained 0.9 percent. Elsewhere in Asia Pacific, gains in tech names helped Korea’s KOSPI rise 0.8 percent.
In Currency Markets the dollar touched a one-month high versus the yen on Wednesday, boosted by a climb in Treasury yields to multi-year peaks overnight as traders wait on U.S. inflation data this week for clues on the pace of Federal Reserve policy tightening. The dollar rose at one point in early Asian trading to 115.69 yen, the highest since Jan. 10, before pulling back to last trade 0.08 percent lower at 115.43. The euro was about flat at $1.1420, following its gradual retreat from a peak of $1.1483 on Friday, which matched the highest level in almost three months.
In US Equity Markets stocks rose on Tuesday, lifted by Apple and Microsoft, while a jump in Treasury yields elevated bank stocks ahead of a key inflation reading this week. The Dow rose 1.06 percent to end at 35,462.78 points, while the S&P 500 gained 0.84 percent to 4,521.52. The Nasdaq Composite climbed 1.28 percent to 14,194.46. Earnings were mixed on Tuesday, with Pfizer Inc down after the drugmaker’s full-year sales forecast for its COVID-19 vaccine and antiviral pills fell short of estimates. Shares of Bank of America Corp, JPMorgan Chase & Co and Wells Fargo all gained over 1 percent.
In Commodities Markets oil slid more than 2 percent on Tuesday from recent seven-year highs as the resumption of indirect talks between the United States and Iran could revive an international nuclear agreement and allow more oil exports from the OPEC producer. Brent futures fell 2.1 percent, to settle at $90.78 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 2.1 percent, to settle at $89.36. Spot gold rose 0.4 percent to $1,827.86 per ounce. Silver rose 0.9 percent to $23.19, platinum climbed 1.4 percent to $1,034.36, while palladium eased 0.2 percent to $2,258.87.
In European Equity Markets stocks ended flat on Tuesday as rising bond yields pressured technology stocks, while a sharp fall in oil prices took the shine off strong earnings from oil company BP. The benchmark STOXX 600 closed largely unchanged. Technology stocks were among the weakest performers, down 0.9 percent as euro zone bond yields rose on speculation over faster-than-expected policy tightening by the European Central Bank. French bank BNP Paribas fell 0.5 percent on reporting lower-than-expected pre-provision fourth-quarter profit hit by higher costs.
In Bond Markets the benchmark 10-year U.S. Treasury yield hit a multi-year high on Tuesday, as yields continue to ascend ahead of a key inflation reading this week and expectations that the U.S. Federal Reserve will start tightening monetary policy. The yield on the 10-year note reached 1.97 percent, its highest level since Nov 7, 2019, as investors await inflation data on Thursday. The yield on the 30-year Treasury bond was up 3.4 basis points to 2.252 percent after reaching 2.271 percent, its highest level since June 4. The two-year U.S. Treasury yield was up 4.8 basis points at 1.344 percent.