Asian Markets take a breather after a steep selloff

21 Jun 2022 , 09:20 AM

Asian equities and U.S. stock futures rose on Tuesday as the market recovered from a recent selloff, but fears linger that aggressive central bank rate rises to combat inflation might trigger a worldwide recession.

Japan’s benchmark Nikkei (+1.76%) average takes on the market with a nearly 2% gain. Hong Kong’s index Hang Seng (+1.15%) was trading with nearly 1% gain.

Globally, Nasdaq closed with about a 1.5% gain. While S&P 500 e-mini share futures jumped nearly 0.5% in the previous day’s trade. Chinese blue chips gained about 0.5%.

Central banks around the world are aiming to aggressively boost interest rates to combat increasing inflation, a position echoed on Tuesday by Reserve Bank of Australia (RBA) Governor Philip Lowe, who hinted at future rate hikes in a speech.

The dollar index, which compares the greenback to six major currencies, fell marginally to 104.32.

Oil prices rose as traders focused on restricted supply rather than weakening global economic growth. US crude was up 1.99 percent to $110.14 a barrel, while Brent was up 1.14 percent to $115.27.

On the Domestic front, broader Indian indices ushered in with nearly 1% gains. BSE Sensex was trading at 52,007.02 points, up by 0.79%. NSE Nifty entered the day with a 0.65% upside at 15,450.15 points.