Asian Stock Market: Drifts lower amid firmer oil, little progress in Ukraine-Russia talks

• Asia-Pacific equities remain mostly negative even as market’s previous risk-aversion fades.
• The bloc being oil’s largest importer, WTI rally negatively affects equities.
• BOJ’s Kuroda hint at further JGB buying, Morgan Stanley urges Fed for caution.
• Light calendar, sluggish negotiations between Ukraine and Russia allow market players to pause earlier risk-off but bears remain hopeful.

Shares in the Asia-Pacific region part ways from stock futures in the US and Europe as investors bear the burden of higher fuel prices and supply fears during Tuesday.

While portraying the mood, the MSCI’s index of Asia-Pacific shares outside Japan drops around 1.0% whereas Japan’s Nikkei 225 remains near a 16-month low, down 1.25% intraday heading into Tuesday’s European session.

It’s worth noting that the WTI crude oil prices rise 1.10% to $118.00 by the press time, following the week-start run-up to the levels last seen during 2008.

Read: WTI Price Analysis: Bounces off weekly support to regain $117.00

Headlines from Reuters indicate no major progress in the peace talks between Ukraine and Russia even as the human corridor is up for a restart. “Ukrainian officials said a Russian airstrike hit a bread factory in northern Ukraine on Monday, killing at least 13 civilians, while talks between Kyiv and Moscow made little progress towards easing the conflict,” said the news.

Even so, the UK and the EU’s resistance to fully ban the oil imports from Russia, as widely pushed by the US, joins the World Bank’s (WB) humanitarian aid to Kyiv to ease the previous risk-off mood. It should be observed that global bond trading major Morgan Stanley urged the U.S. Federal Reserve on Tuesday to take a more cautious approach to raising interest rates as Russia's invasion of Ukraine spurs already sky-rocketing global inflation, per Reuters, whch in turn challenge the optimists.

Hence, markets pause the previous day’s heavy bearish move but remain on the back foot in Asia. That said, Australia’s ASX 200 fails to cheer upbeat sentiment numbers from National Australia Bank (NAB) whereas New Zealand’s NZX 50 also drop 1.40% by the press time.

Chatters of expected easing in China inflation figures during the next month seem to have failed to recall the bulls as stock in Beijing and Hong Kong are mostly down.

It’s worth noting that Indonesia’s IDX Composite and India’s BSE Sensex do buck the broad downtrend with mild gains amid positive headlines concerning coronavirus.

On a broad front, the US 10-year Treasury yields extend the previous day’s rebound from two-month to 1.80%, up five basis points at the latest, whereas S&P 500 Futures print mild gains at the latest.

Moving on, updates concerning Ukraine will direct short-term market moves. Also important will be Thursday’s US Consumer Price Index (CPI).

Read: S&P 500 Futures, Nikkei 225 stay depressed, US T-bond yields extend recovery amid Ukraine crisis