Treasury yields rose and shares in Asia steadied on Tuesday as investors weighed higher energy costs and the outlook for inflation that are prompting a slew of central banks to continue raising interest rates. interest
Stocks rose in Japan, Australia and South Korea. US equity futures rose ahead of the resumption of Wall Street trading after a holiday break. Treasuries fell across the curve, taking the 10-year yield to 3.21 percent.
Crude oil has risen to around $89 a barrel after OPEC+ agreed to cut output by 100,000 barrels a day in October. Natural gas prices rose in Europe on Monday, hurting shares in the region, after Russia kept the Nord Stream pipeline offline.
A gauge of the US dollar retreated as it remained in sight of a record high. The pound rose as markets digested Liz Truss’s victory in the race to succeed Boris Johnson as UK prime minister. The euro found some relief after falling to a two-decade low on Monday, hit by Europe’s energy woes.
The offshore yuan advanced after China on Monday announced a reduction in the amount of foreign currency deposits that banks must set aside as reserves, a move to help the currency after it fell to a two-year low.
The next stage of a wave of monetary tightening is due to occur in Australia, where economists expect the central bank to raise interest rates by another 50 basis points. Tightening financial conditions globally are weighing on stocks and bonds.