- Stocks, Treasury Yields Rise as Crude Oil Climbs
- Crude bolstered by the first OPEC+ supply cut in over a year
- Yuan fluctuates after China’s move to cut forex reserve ratio
Stocks in Asia rose along with US equity futures on Tuesday amid a dip in the dollar, a break from the dour sentiment that’s been prevailing in markets as central banks tighten monetary policy.
Shares advanced in Japan and Hong Kong while China fluctuated. S&P 500 futures pushed higher ahead of the resumption of Wall Street trading after a holiday. Treasuries dipped across the curve, taking the 10-year yield to 3.21%.
Crude has climbed to about $89 a barrel after OPEC+ agreed to cut 100,000 barrels a day in October. Gas prices surged in Europe on Monday, hurting the region’s shares, following Russia’s decision to keep a key pipeline offline.
A dollar gauge retreated, with the British pound and commodity-linked currencies leading gains. The euro also found some relief after earlier hitting a two-decade low on Europe’s energy woes.
The offshore yuan pared gains after strengthening in the wake of China’s announcement of a cut in the amount of foreign-exchange deposits banks must set aside as reserves. The People’s Bank of China set the daily reference rate for the yuan at a stronger-than-expected level for a 10th day, the longest run since 2019.
The next leg in a wave of monetary tightening is due in Australia, where economists expect the central bank to lift the policy rate by a further 50 basis points. Tightening financial conditions globally have been weighing on stocks and bonds in recent weeks. Bouts of investor calm have tended to fizzle.
Elsewhere, Bitcoin retook the $20,000 level and gold made gains.