AFP, Hong Kong :
Asian markets rose yesterday following a positive performance on Wall Street as traders prepared for the release of highly anticipated US inflation data, while sentiment was also buoyed by signs of easing Russia-Ukraine tensions.
Oil prices also enjoyed a small bounce on demand optimism after two days of losses fuelled by the positive vibes from Eastern Europe and as talks on an Iran nuclear deal appear to be progressing.
With speculation swirling over the Federal Reserve’s plans to battle soaring prices, global equities have fluctuated wildly at the start of the year as traders try to position themselves for a series of interest rate hikes that are likely to begin in March.
The prospect of the removal of cheap cash — which has pushed markets to record or multi-year highs — has particularly hit tech firms as they are more susceptible to higher rates. However, the sector helped New York’s three main indexes to healthy gains on Tuesday, and Asia followed suit in early trade Wednesday.
Hong Kong jumped more than one percent thanks to a surge in market heavyweights Alibaba and JD.com, while Tokyo, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei, Manila and Jakarta were also well up.
Still, investors remain nervous and Thursday’s US January inflation print is front and centre this week.
Forecasts are for another pop up from the four-decade-high seven percent seen in December, while a big miss in either direction could have big consequences for markets.
