Most stocks in Asia and the Pacific were down on Tuesday morning. This was because Wall Street fell and oil prices went up because of worries about tight supplies.
By 10:31 PM ET, Japan’s Nikkei 225 had gone up by 0.16 percent (0.23 GMT).
South Korea’s KOSPI fell 0.30 percent.
In Australia, the ASX 200 rose 0.23 percent.
The Hang Seng in Hong Kong fell 1.1%.
The Shanghai Composite was down 0.49 percent, and the Shenzhen Composite was down 0.38 percent. Governor Yi Gang of the People’s Bank of China promised to keep the supportive monetary policy in place to speed up the recovery from COVID-19.
The S&P 500 fell 0.3%, while the Nasdaq 100 fell 0.8%.The 10-year US Treasury yield was around 3.19 percent.
Crude went over $110 per barrel because there wasn’t enough oil to go around because Russia couldn’t export oil because of sanctions. Libya and Ecuador said that political unrest could cause them to cut production, which added to the worries about supply.
The leaders of the Group of Seven (G7) are going to talk about how to stop energy prices from going up. They are thinking of putting a price cap on Russian exports of crude oil and oil products while limiting the damage to economies.
In a note, analysts at the Commonwealth Bank of Australia said that news of a tight supply of oil helped the market.
“Political unrest could cut off supplies from Ecuador and Libya, which are both second-tier producers. Then there’s the price cap that the G7 wants to put on Russian oil. “
Earnings revisions are a risk because the US economy is expected to slow down next year. However, China’s freedom from COVID restrictions could help the world economy, Lorraine Tan, director of equity research at Morningstar, told Bloomberg.
“In terms of growth, the US will slow down in 2023, but China should get out of its lockdown,” Tan told Bloomberg.
Christine Lagarde, the head of the European Central Bank (ECB), Jerome Powell, the head of the U.S. Federal Reserve, Andrew Bailey, the governor of the Bank of England, and Loretta Mester, the head of the Cleveland Fed, are all scheduled to speak at the ECB event on Wednesday.
On Thursday, China’s purchasing managers index will be released in the Asia-Pacific region.
