Asian markets were flat on Wednesday as oil began to climb back up after the International Monetary Fund downgraded its global growth forecast for 2022, after the International Monetary Fund downgraded its global growth forecast for 2022.
The International Monetary Fund lowered its outlook to 3.6 percent - a gain of 08 percent from its previous estimate in January - prompting a five-percent dive in oil prices on Tuesday.
The fund pointed out rising energy prices, rising debt, supply-chain woes, and a series of inflationary crises linked to the war in Ukraine and the coronaviruses epidemic.
The economic effects of the war are spreading far and wide - like seismic waves that emanate from the epicenter of an earthquake, according to the report by the International Monetary Fund chief economist Pierre-Olivier Gourinchas.
After the announcement, US stocks rallied after promising housing-starts data and solid corporate earnings showed signs of susceptibility to global economic trends.
There are only two things that can cause oil to drop, recession and demand destruction in the absence of inventory buffers. More people were willing to check one or both of those boxes overnight on the back of the IMF warning shot and China's protracted lock-down, said Stephen Innes, head of SPI Asset Management.
Tens of millions are still not allowed to leave their homes in China's economic centre Shanghai and tech hub Shenzhen, where a Covid 19 outbreak has broken down supply lines and shuttered businesses.
Along with the positive corporate earnings and housing data, Wall Street's strength stemmed from the positioning of the market.
It's a nice rally from an oversold position, said Art Hogan, strategist at National Securities, who said the dynamics reflected a pretty oversold market in Tokyo, the Nikkei 225 opened slightly higher, but the Hang Seng Index in Hong Kong was barely lower after China's growth concerns and Beijing's crackdown on the tech sector on Tuesday.
Shanghai and Seoul were down while Sydney, Jakarta, and Taipei were inching upward.
Dollar yen: DOWN at 128.65 yen from 128.89 yen
The euro pound was down by 82.92 pence from 82.98 pence.
Brent North Sea crude: UP 0.50 percent at $107.79 per barrel.
West Texas Intermediate: UP 0.67 percent at $103.25 per barrel.
New York - Dow was up 1.5 percent at 34,911.