As Oil Fluctuates, Stocks Rise Ahead of Ukraine Talks – Asia Market Wrap

Asian stocks rose as investors anticipated Trump’s talks with Zelenskiy, following the summit with Russia that ended without heightening geopolitical tensions.

The MSCI Asia Pacific Index increased 0.4%, driven by advances in China and Japan, while South Korea trailed. Futures for European stocks rose 0.2%, while those for the S&P 500 increased 0.1%. A barometer of Shanghai-listed stocks is poised for its highest closing in a decade. Indian stocks rose 1.5%, the biggest in more than three months, on plans to reduce the consumption tax for the first time since it was implemented nearly ten years ago.

Crude oil prices fluctuated as supply disruption fears eased. The Dollar index remained steady. Treasuries edged higher, with the 10-year yield down 1 bp to 4.30%. Gold increased 0.6%, while cryptocurrencies dropped.

Meanwhile, foreign investor holdings of Treasuries reached a new high in June, indicating continued demand for US government debt despite a drop in the dollar, raising concerns about attitude towards American assets.

This week, investors will also await Japanese inflation statistics to see if the BoJ will raise interest rates again this year. China’s lending prime rates will also be watched as Beijing prepares to respond to Trump’s trade war with additional stimulus measures.