Asian markets up ahead of key US inflation data

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Asian markets up ahead of key US inflation data

Asian markets went up Tuesday as investors waited for key US inflation data later in the week, although the volatility is expected to continue as central banks bring an end to the era of cheap cash.

After a slow start to the week, the region shifted higher in early trade thanks to bargain-buying and after Friday's bigger than expected surge in US jobs for January, which reassured on the state of the economic recovery.

The inflation reading to be announced on Thursday is expected to see another painful rise in prices for the month, having come in at a four-decade high in December.

The Fed's first move in March has caused central banks around the world to reverse the policies put in place two years ago to guard against the economic impact of Covid 19 and while many have lifted rates already, all eyes are on the Fed's first move in March.

While US finance chiefs have not given a timetable for their increases, speculation is swirling over how many it will announce this year - with forecasts ranging from three to seven and by how much.

The uncertainty has weighed on global markets this year, and commentators have warned that further ructions are to be expected.

A feeling that recent selling may have been overdone has attracted investors back into the fray.

The markets will get used to the tightening regime at some point, said Chris Iggo, chief investment officer for core investments at AXA Investment Managers.

The growth and earnings forecast revisions will be key in the next few months. On Tuesday, Tokyo was in positive territory after the news that the United States will relax tariffs on steel imported from Japan imposed by Donald Trump, while Sydney, Singapore, Seoul, Wellington, Bangkok, Taipei and Manila were also up, as well as a lot of the news that the United States will ease tariffs on steel imported from Japan.

Hong Kong dropped with already-troubled Alibaba under pressure from reports that major shareholder SoftBank planned to offload part of its huge stake in the firm.

After Washington added it to a list that could restrict its US operations, Chinese drug giant Wuxi Biologics suspended trading after it suffered a record slump. The firm was down more than 20 percent when it stopped trading.

Mumbai and Jakarta were slightly lower.

London and Frankfurt opened higher but Paris fell.

Traders are keeping a close eye on events on the Ukraine border as Russia masses troops, with Western nations warning it is planning an invasion.

The threat of war has kept upward pressure on oil prices in recent weeks, but the main driver has been expectations for a surge in demand due to economic reopenings, tight supplies and a cold snap in the United States.

OANDA's Edward Moya said signs of progress in the US-Iran nuclear talks - which could see Tehran sell internationally again -- would likely not have a long-term impact on the rally towards $100 a barrel.

Energy traders locked in some profits over the belief that the US and Iran might be able to salvage a nuclear deal, he said.

A quick revival of the Iran nuclear deal seems unlikely, so any relief from additional barrels of crude from Iran shouldn't be priced in. The oil market is heavily in deficit and any weakness will likely be short-lived. Both main contracts were slightly lower Tuesday but remain around highs not seen since 2014.

The euro dollar was DOWN at $1.1403 from $1.1440 late Monday.

The euro pound was DOWN at 84.28 pence from 84.51 pence.

Dollar yen: UP at 115.42 from 115.10 yen

West Texas Intermediate: DOWN 0.6 percent at $90.77 per barrel.

Brent crude oil in the North Sea was down 0.7 percent at $92.08 per barrel.