Asian stocks were mixed Tuesday as traders parsed geopolitical risks and worries about Federal Reserve policy tightening. Chinese shares outperformed on central bank steps to aid economic growth.
China’s CSI 300 index climbed about 1% after the nation’s monetary authority injected a net 100 billion yuan ($15.7 billion) into the banking system with its medium-term lending facility.
Equities retreated in Japan and Hong Kong. S&P 500 and Nasdaq 100 futures made modest gains, while European contracts fluctuated. The S&P 500 on Monday notched a third straight drop after a few attempts at a rebound. Treasury yields edged down amid a flatter curve signaling concerns that looming Fed interest-rate hikes could choke economic growth.
The ebb and flow of haven demand due to the Ukraine standoff has also whipsawed bonds. The dollar dipped and gold touched an eight-month high. The Russia-Ukraine tensions are still keeping oil markets on edge.
West Texas Intermediate inched lower but remained around $95 a barrel after earlier scaling that mark for the first time since 2014. Iron ore futures tumbled by more than 10% in Singapore on China’s push to rein in prices. Diplomatic efforts are continuing to defuse the Ukraine situation.
