Indian indices on Tuesday may witness a flat start amid weak global trends. Indices on Friday closed higher with technology and metal stocks leading the gains. US stocks closed lower in the overnight session, with few catalysts to sway investor sentiment as they approach the half-way point of a year in which the equity markets have been slammed by heightened inflation worries and tightening Fed policy. In Asia, initial bounce in stocks cooled as shares made marginal gains in Japan, South Korea, and Australia, while it fell in Hong Kong and Shanghai.
Asia stocks edge down after Wall Street falls; oil rises
Asian shares edge down in early trade on Tuesday with investors taking their cue from a volatile Wall Street session overnight, while oil prices climbed following last week’s rout.
Oil continued to rise with investors still weighing worries over an economic slowdown against concern over lost Russian supply amid sanctions related to the conflict in Ukraine.
“A seam of tight supply news bolstered the (oil) market,” analysts at Commonwealth Bank of Australia said in a research note. “Political unrest might curtail supply from a couple of second-tier producers, Ecuador and Libya. And then there’s the G7’s proposed price cap on Russian oil.”
Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.7%. The index is down 3.8% so far this month. U.S. stock futures, the S&P 500 e-minis, were up 0.27%.
Australian shares were up 0.25%, while Japan’s Nikkei stock index rose 0.5%.
China’s blue-chip CSI300 index was 0.4% lower in early trade. Hong Kong’s Hang Seng index opened down 0.36%.
Australian shares nudge higher on mining, energy boost
Australian shares climbed on Tuesday, lifted by miners and energy stocks, as easing of COVID-19 restrictions in China boosted prices of commodities.
The S&P/ASX 200 index rose as much as 0.4% by 0043 GMT, its highest level since June 14. The benchmark jumped 1.9% on Tuesday.
Leading gains on the benchmark, energy stocks climbed 2.5% to hit a near one-week high.
Tokyo stocks gain on bargain-hunting
Tokyo stocks traded higher Tuesday on bargain-hunting, having opened down following falls on Wall Street.
The benchmark Nikkei 225 index was up 0.37 percent, or 100.42 points, at 26.971.69 in morning trade, while the broader Topix index was up 0.60 percent, or 11.33 points, at 1,898.75 yen.
US stocks fall after recent big gains; oil, yields rise
US stocks ended a volatile trading session slightly lower on Monday after posting sharp gains the week before, while oil prices and Treasury yields rose.
Oil climbed following last week’s rout, as the Group of Seven nations promised to tighten the squeeze on Russia’s finances with new sanctions that include a plan to cap the price of Russian oil.
Investors have been hoping oil’s slide from three-month peaks hit earlier in June could ease overall inflation concerns and allow the U.S. Federal Reserve to tighten policy less aggressively than initially feared.
Stocks moved between gains and losses during the session on Wall Street, with big growth shares leading the way down.
The S&P 500 earlier this month confirmed it is in a bear market.
The Dow Jones Industrial Average fell 62.42 points, or 0.2%, to 31,438.26, the S&P 500 lost 11.63 points, or 0.30%, to 3,900.11 and the Nasdaq Composite dropped 83.07 points, or 0.72%, to 11,524.55.
The pan-European STOXX 600 index rose 0.52% and MSCI’s gauge of stocks across the globe gained 0.31%.
A further easing of COVID-19 restrictions in China helped to support global indexes.
The 10-year note rose 7 basis points to 3.194% and the two-year’s yield, which can herald rate expectations, gained 6.9 basis points to 3.126%.
Brent crude futures settled up $1.97, or 1.7%, at $115.09 a barrel, while U.S. West Texas Intermediate crude closed up $1.95, or 1.8%, at $109.57.
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