Hong Kong, June 21 (BNA): Asian shares and US stock futures rose on Tuesday as the market bought shares after a sharp sell-off recently, but concerns remain that a central bank hike in interest rates to curb inflation could lead to a recession. worldwide.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.85% in early trade, up from a more than five-week low hit the previous day, Reuters reports.
Japan’s benchmark Nikkei index opened 1.16% higher, and Nasdaq and S&P500 e-mini futures are up, each up nearly 1.5%.
“I think the green we’re seeing this morning is not necessarily a job people are going back to risky assets,” said Keri Craig, global market analyst at JPMorgan Asset Management.
“It’s just normal behavior in very big sell-offs to get some rest and a breather because basically, nothing has changed on the macro front for the past week.”
Chinese blue chips rose 0.5%.
Central banks around the world are looking to aggressively raise interest rates to curb rising inflation, a sentiment underscored on Tuesday by Reserve Bank of Australia Governor Philip Lowe, who in a speech signaled further rate hikes.
“As we plan our way back to 2-3% inflation, Australians should be prepared for further rate increases,” Lowe cautioned. “The level of interest rates is still too low for an economy with low unemployment and high inflation.”
However, Australia’s S&P/ASX 200 Index is up 1.12% in early trading. The Australian dollar rose 0.3% on the news before paring gains.
The euro also rose 0.25% on improved risk sentiment, after European stock markets posted modest gains on Monday to recover a few from last week’s huge losses. US markets were closed for a holiday.
The dollar index, which measures the greenback against six major peers, slipped slightly to 104.29. The Japanese yen remained under pressure at 135.07 yen to the dollar, not far from a 24-year low of 135.58 yen hit early last week.
In the bond markets, the yield on the 10-year US Treasury was 3.2976%, up slightly from last Friday’s close.
Last week’s peak of 3.495% was the highest yield in 10 years since 2011, and came on the same day the Fed raised interest rates by a whopping 75 basis points.
Oil prices swung higher as traders focused on limited supplies rather than slowing global economic growth. US crude rose 2.12 percent to $111.88 a barrel, and Brent crude rose at $115.56, up 1.25 percent on the day.
Treasury Secretary Janet Yellen said on Monday that the United States is in talks with Canada and other allies globally to further constrain Moscow’s energy revenue by capping the price of Russian oil without causing spillover effects on low-income countries.
Spot gold rose 0.1% to $1,840.40 an ounce. % for US gold futures to $1,835.60 an ounce.
Bitcoin price was at $20,500 after failing to break strongly above or below the psychologically important $20,000 level in recent days.