By Zhang Mengying
Investing.com – Asia-Pacific stocks were mostly up on Tuesday morning as investors monitored China’s COVID-19 flare-ups.
Japan’s Nikkei 225 jumped 1.78% by 8:45 p.m. ET (0145 AM GMT).
South Korea’s KOSPI gained 0.33%.
In Australia, the ASX 200 rose 1.35%. Australian yields rose, as the Reserve Bank of Australia Governor Philip Lowe reiterated that further interest rate hikes likely loom.
Hong Kong’s Hang Seng was up 0.98%.
China’s Shanghai Composite was down 0.31% while the Shenzhen Component was down 0.38%.
Investors are now monitoring China’s COVID-19 flare-ups as it saw outbreaks in cities like Shenzhen.
U.S. stock and bond markets remained closed on Monday for the Juneteenth holiday. U.S. indices ended Friday largely in the green with the S&P 500 up 0.22% and the Nasdaq 100 up 1.24%.
The U.S. benchmark 10-year yield rose to about 3.28% Tuesday morning.
Adding to investors’ concerns, St. Louis Fed President James Bullard warned that U.S. inflation expectations could “become unmoored without credible Fed action,” while former Treasury Secretary Lawrence Summers suggested that to counter price pressures, the U.S. jobless rate would need to rise above 5% for a sustained period.
“There might be a narrative that we’ve hit bottom, we are oversold, the Fed is taking inflation seriously and that might be slightly bullish in the interim,” Optimal Capital director of strategy Frances Stacy told Bloomberg.
In Europe, European Central Bank President Christine Lagarde reiterated that officials intend to deliver interest rate hikes in July and September despite growing concerns over financial-market tensions.
Fed Chair Jerome Powell will testify to the Senate and the House on Wednesday and Thursday.