Asian Stock Markets: Buyers cheer easing Russia-Ukraine tensions

• Asia-Pacific markets remain firmer as fears of Russia invasion ebb.
• Softer China inflation, mixed concerns Fed’s next moves also help equities.
• US T-bond yields snap two-day uptrend, stock futures struggle with mild losses.
• FOMC Minutes will be crucial to watch, geopolitics is important too.

Asian traders track global moves while snapping the previous two-day downtrend during Wednesday. The reason could be linked to hopes of no further escalation in the Russia-Ukraine tussles after Moscow rolled back some of its troops from borders.

While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan rises 1.0% whereas Japan’s Nikkei 225 rises the most since November 2021, up 2.25% heading into the European session.

Elsewhere, Chinese equities benefit from expectations of further monetary policy easing by the People’s Bank of China (PBOC), following downbeat China inflation, while Aussie shares follow upbeat Westpac Leading Index and China stocks to propel ASX 200 with 1.0% at the latest. Furthermore, New Zealand’s NZX 50 rise 1.50%, rebounding from a two-week low.

Moving on, South Korea’s KOSPI adds nearly 2.0% even as the nation registers an uptick in January Unemployment Rate to 3.6%, versus 3.5% expected and 3.8% prior. Additionally, Indonesia’s IDX Composite follows the trend to print mild gains but India’s BSE Sensex bucks the trend, down 0.25% intraday at the latest, amid market’s anxiety with hopes of Reserve Bank of India’s (RBI) monetary policy tightening.

Elsewhere, the US 10-year Treasury yields and stock futures remain on the back foot by the press time. That said, the price of WTI crude oil remains indecisive near a multi-day high but gold keeps the previous day’s pullback from the eight-month peak.

Moving on, January Retail Sales from the US and Federal Open Market Committee (FOMC) Minutes will be crucial to follow for fresh impulse whereas geopolitical/trade headlines from Russia and China can also entertain traders.

Read: US yet to verify pull back of Russian troops, yet risk-on ahead of European open