Asian stocks rise ahead of Russia-Ukraine peace talks
Written byTimes Magazine
Asian stocks rose on Tuesday after Wall Street rose ahead of another peace talk between Russia and Ukraine. However, crude oil prices continued to fall after falling 7% on Monday. Trade remains volatile as investors gauge inflation and the global economy as the fallout from Russia's invasion of Ukraine continues.
Ukrainian forces claim to have recaptured the outskirts of Kyiv and the eastern city from Russia, turning into a local stalemate as negotiators gathered in Turkey for a new round of talks on Tuesday to end the fighting.
Ukrainian President Volodymyr Zelenskyy said his country could declare neutrality to ensure peace but prioritize defending its sovereignty and territory.
Tokyo's Nikkei 225 rose 0.6 percent to 28,110.73, and Seoul's Kospi gained 0.3 percent to 2,737.05. Hong Kong's Hang Seng rose 0.6 percent to 21,826.68, while the Shanghai Composite Index fell 0.2 percent to 3,207.64 as the city entered its second day of lockdown to combat the COVID-19 outbreak.
Australia's S&P/ASX 200 rose 0.7% to 7,467.20. His government plans to increase national security spending while cutting household spending by cutting gas taxes, Treasurer Josh Freidenberg said before presenting his budget proposal on Tuesday.
Lower oil prices helped boost stocks, said IG's Yeap Jun Rong.
"China, Japan, South Korea, and Taiwan are big oil importers so that lower oil prices can be positive for their economies," Yep said.
US crude fell 71 cents to $105.21 a barrel on e-commerce on the New York Mercantile Exchange. On Monday, it was down 7% and Brent oil, the international standard, was 6.8%.
Brent crude fell 84 cents to 108.65 a barrel in London.
The latest drop in oil prices followed news of China's most widespread coronavirus lockdown in two years to contain the growing outbreak in Shanghai. This can affect global energy demand.
Oil prices remain volatile amid Russia's invasion of Ukraine. However, the UAE's energy minister doubled down on its oil alliance with Russia on Monday, saying the country is a vital member of the global energy alliance OPEC+, producing 10 million barrels of oil per day.
Oil prices are up about 40% globally as demand tightens as demand remains strong. However, higher oil prices have also raised concerns that persistently high inflation could exacerbate and further threaten global economic growth.
On Wall Street, the S&P 500 was up 0.7% at 4,575.52. The Dow Jones Industrial Intermediate rose 0.3% to 34,995.89. The Nasdaq Technology Composite closed 1.3% higher at 14,354.90.
Shares of small companies have not changed much. The Russell 2000 Index was up less than 0.1% at 2,078.06.
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