Asian Shares Gain As Selloff Eases

On Tuesday, June 21, 2022, Asian stocks and US share futures rose after a recent severe selloff, but concerns linger that aggressive central bank rate hikes to curb inflation could ignite a worldwide recession, Selena Li reported for Reuters.

Photo Insert: Australia's S&P/ASX 200 index rose 1.12.

MSCI's broadest index of Asia-Pacific equities outside Japan advanced 0.85 percent in early trading, moving up from a more than five-week low reached the day before. Japan's Nikkei average opened 1.16 percent higher, while Nasdaq and S&P500 e-mini share futures both jumped over 1.5 percent. Blue chips in China gained 0.5 percent.

"I think the green that we're seeing this morning is not necessarily a function that people are moving back in towards risk assets," said Kerry Craig, global market strategist at JPMorgan Asset Management.

Still, Australia's S&P/ASX 200 index rose 1.12 percent in early trading. The Australian currency climbed 0.3 percent in response to the news before retreating.

The euro climbed 0.25 percent as risk sentiment improved, after European stock markets gained little on Monday, recouping some of last week's heavy losses. The markets in the United States were closed for the holiday.

The dollar index, which compares the greenback to six major currencies, fell marginally to 104.29. The Japanese currency was trading at 135.07 yen per dollar, not far from a 24-year low of 135.58 yen set early last week.

Bond yields on US benchmark 10-year treasury notes were 3.2976 percent, up slightly from last Friday's close.

The 10-year yield reached 3.495 percent last week, its highest level since 2011, on the same day the Fed hiked interest rates by 75 basis points. Oil prices rose as traders focused on restricted supply rather than weakening global economic growth. US crude was up 2.12 percent to $111.88 a barrel, while Brent was up 1.25 percent to $115.56.

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