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Title: Asia shares squeeze higher, take brief respite from growth fears

Jul 05, 2022 02:25AM ET

By: AnalysisWatch

Asian shares eked out their best day in a week on Tuesday as positive economic data and hints of easing Sino-U.S. tensions offered some respite after recent sell-offs, though fears of a global recession and sky-high inflation tempered the mood.

Still, the Asian regional index has fallen 16.86% so far this year, as worries that central banks around the world will push economies into recession to break red-hot inflation have sent investors running for cover.

A survey showing China's services activity grew at the fastest pace in almost a year also helped sentiment, he said.

There was also positive data from Japan where the country's services sector activity expanded at the fastest pace in over eight years in June as the easing of coronavirus curbs boosted sentiment among businesses such as those in tourism, helping the Nikkei to rise 1.05%.

With the Reserve Bank of Australia meeting market expectations on the policy front, the risk-friendly Australian dollar was little changed at $0.6871.

U.S. treasury yields returned from the holiday higher, with the yield on benchmark 10 year notes at 2.952% but failing to push back above the symbolic 3% level.

Brent crude futures gave up early gains to trade down 0.2% at $113.28 a barrel.

Spotgold was up 0.08% at $1810.48 an ounce, paring Monday's lossesthe same on Thursday.

Norwegian offshore workers began a strike earlier in the session that is expected to cut the oil output by as much as 130,000 barrels per day from Wednesday, the country's oil and gas association forecast on Sunday, about 6.5% of Norway's production.

By 02:05 AM ET, U.S. crude futures traded 1.6% higher at $110.12 a barrel, while the Brent contract was largely unchanged at $113.250. There was no settlement for WTI on Monday because of the Independence Day public holiday in the United States.

Additionally, gold futures rose 0.6% to $1,811.60/oz, while EUR/USD traded 0.1% higher at 1.0436.

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