Asian Stock Markets: Bulls on adrenaline rush after Ukraine agrees on Putin’s stipulations

• Asian stock markets have carry-forwarded a two-day winning streak on Thursday.
• Carnage in oil prices has underpinned the Asian equities.
• The DXY has slipped near 98.00 amid the improvement in the risk appetite of investors.

Markets in the Asia domain are on an adrenaline rush after Ukrainian President Volodymyr Zelenskyy agreed to withdraw its membership appeal for NATO. This will lead to a higher expectation of a ceasefire between Russia and Ukraine. However, the headline of a truce has been digested by the market participants as we have witnessed a firmer bullish move in the trading sessions of Tuesday and Wednesday.

While a strong bullish drive move on Thursday should be tagged to the carnage at the oil prices. US President Joe Biden urged the oil producers to expand their output. After acknowledging the appeal, the OPEC member UAE endorse more pumping to fix the galloping deviation in the demand-supply mechanism.

"We favor production increases and will be encouraging OPEC to consider higher production levels," tweeted by the UAE Embassy in Washington.

The UAE will encourage the cartel players who have spare capacity to explore more oil, which can ease the impact of a ban on the Russian oil supply. This has brought a sell-off in the oil prices, which have tumbled near $106.00, an almost 16% low from its recent highs at $126.51.

Oil prices hold a serious impact on the equities. The rising oil prices affect the cost of manufacturing and transportation activities and eventually the operating margins of the enterprises. Therefore, a serious plunge in the oil prices has sent the Asian equities higher to the rooftop.

Meanwhile, the US dollar index (DXY) is settling around 98.00 on fading safe-haven appeal and uncertainty over the US inflation numbers, which are due on Thursday. While the 10-year US Treasury yields are aiming for 2% amid the rising bets over an aggressive interest rate decision by the Federal Reserve (Fed) in the monetary policy meeting next week.