Crude Drops Below $90, Mood Improves & Stocks Rise – Asia Market Wrap

Stocks climbed and oil remained below $90 per barrel after a report on the potential release of oil reserves to alleviate rising energy prices improved market confidence, following recent asset volatility.

The MSCI Asia Pacific Index climbed 1.5% for the second day in a row, as the Wall Street Journal reported that the IEA had proposed the greatest petroleum reserve release in its history.

Brent fell 0.9% after dropping 11% in the previous session. Treasuries climbed ahead of the release of the US inflation report later Wednesday, while the Dollar fell for the fourth straight day.

Markets remained volatile as oil had its worst one-day drop in four years on Tuesday, following contradictory signals from the Trump administration on the Iran war.

Gold extended its gains from the previous day, trading above $5,200 per ounce. Treasuries rose, with the benchmark 10-year yield decreasing one basis point to 4.14% on Wednesday.