Asian stocks rebound as Wall Street futures gain after holiday

BEIJING

Wall Street futures moved higher Tuesday, while Asian stocks rebounded Tuesday. U.S. markets were shut down for a holiday.

Shanghai, Tokyo and Hong Kong gained. Oil prices rose to over US$110 per barrel.

The future for Wall Street’s benchmark S&P 500 index was up 1.4% after a three-day holiday weekend.

“Today’s gains are attempting to pare back on previous losses, suggesting the presence of dip-buyers,” saidYeap Jun Roong of IG in a rapport.

The Shanghai Composite Index gained 0.1% to 3,318.29 while the Nikkei225 Tokyo gained 1.8%, to 26,225.15. Hong Kong’s Hang Seng grew 1% to 21,368.85

The Kospi in Seoul was 0.4% higher at 2,398.95 and Sydney’s S&P-ASX 200 rose 1.2% to 6,509.80.

New Zealand and Southeast Asian markets benefited.

Investors are concerned that efforts by the U.S. central banks and European central bank to reduce inflation, which is at a four-decade high, could lead to global economic slowdown.

Japan and China are two of the three largest economies. They have not joined rate hikes. China’s central banks left its benchmark rates unaffected on Monday. Despite concern that the weakening of yen’s exchange rate is a problem, Bank of Japan maintained its policy of close-zero interest rates.

The S&P 500 has fallen by more than 20% from its Jan. 3 peak, putting it in what traders call a bear market.

Investors are searching for clues on Fed plans for possible additional rates hikes when Chair Jerome Powell speaks in front of congressional committees this Wednesday.

European stock markets advanced Monday. Shanghai, Tokyo, and Seoul all declined.

Energy markets saw benchmark U.S. crude rise $2.47 to $110.45 a barrel in electronic trading on New York Mercantile Exchange. Brent crude oil, the international oil trading price standard, increased by $1.46 to £115.59 per barrel in London.

The dollar remained steady at 135 against the yen. The euro gained $1.0529 to $1.0491.