Oil was steady as investors assessed the possible return of Iranian barrels if the country reaches a nuclear deal with world powers
Asia Pacific stocks were up on Wednesday morning as geopolitical risks from the Ukraine tension cast a shadow on the markets.
Japan’s market is closed for a holiday. South Korea’s KOSPI inched up 0.11%. The Bank of Korea will hand down its policy decision on Thursday. In Australia, the ASX 200 gained 0.3%. Hong Kong’s Hang Seng Index was up 0.51%.
China’s Shanghai Composite was up 0.54% while the Shenzhen Component added 0.97%.
In order to stabilize the economy, China Huarong Asset Management Co. and its peers are to buy property assets from troubled developers. It also plans to take over or restructure smaller lenders.
U.S. President Joe Biden announced measures that target Russia’s sale of sovereign debt abroad and the country’s elites after Russian President Vladimir Putin ordered Russian troops to ‘maintain peace’ in the two breakaway regions in eastern Ukraine on Monday.
Biden said the U.S. would impose stricter sanctions if Russia ‘continues its aggression.’
A rally in commodities highlighting economic risks from inflation was also on investors’ radars. They are concerned that the Ukraine tension could impact commodity supplies, leading to a boost in everything from energy to wheat and nickel.
Oil was steady as investors assessed the possible return of Iranian barrels if the country reaches a nuclear deal with world powers.
The market is facing pressures from geopolitical risks, as well as the prospect of tighter U.S. Federal Reserve monetary policy to fight inflation. Investors expect the Fed will hike interest rates due to higher raw material costs in the wake of the Ukraine tension.
On the data front, the U.S. will release new home sales, GDP, and initial jobless claims on Thursday.
