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Asia-Pacific markets up as investors watch oil prices, yen weakness

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SINGAPORE — Stocks across Asia-Pacific rose, following a tumble in oil prices overnight. Bitcoin, however, soared above a crucial level and the Japanese yen did not slow down.

Japan’s Nikkei 225The Topix was up 0.45% in the early trades, and it rose by 0.27%. Technology stocks rose, SonyIncreased by 1.34% SoftBank GroupUp to 1%

Australia’s S&P/ASX 200 jumped 0.75%, as bank stocks rose. However, oil stocks and miners declined which bucked the trend. South Korea KospiIt was 0.3% higher

The day’s economic data includes Australia’s February retail sales.

Oil prices slumped overnight on demand concernsResults from a new lockdown in ShanghaiDiverse more than 8%.

China’s oil consumption is 4% in Shanghai. The 15.5 million-strong market is worried that the spread could eventually threaten the markets. [million barrels per day]Brian Martin, Daniel Hynes and ANZ Research analyst said the country uses about 2,000 barrels of oil per day.

The morning Asia trade saw prices continue to slide, U.S. crude futures slipping 1% to $104.84, and Brent crude futures down 1.5% to $110.79 per barrel. 

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Wall Street, Monday gained in a tech-heavy market rally. The Dow Jones Industrial Average gained 94.65 point or 0.27%. The S&P 500 climbed 0.7%, while the Nasdaq Composite gained 1.31%.

Currencies

BitcoinIt broke through the $45,000 threshold overnight, and it erased all its losses in 2022. The stock jumped as high as 6.7%, to $47.914.35, and climbed as high as 6.7%, reaching a peak of $68,914.35. The last time it reached $47,307 was 5.4% more.

It U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.079 — jumping from levels around 98.8 from previous sessions.

It Japanese yenIt traded at 123.49 dollars per dollar as the currency continued to decline.

Rodrigo Catril of National Australia Bank, senior foreign currency strategist wrote that the Japanese yen was still the major story in FX. He noted in a Tuesday note that USD/JPY has been extending its vertical rise in the past 24hrs.

The recent weakness in the yen was largely due to Bank of Japan’s yield curve control (YCC) policyCatril explained that this has kept the Japanese 10-year government bond rate (JGBs), within a range of 0.25%, even though core global bond yields are rising. On Monday however, Catril explained that the central bank sent a clear signal to YCC that it is “here to stay for a while longer.” it offered to buy unlimited amounts of 10-year JGBs at 0.25%This week’s first four days.

This pushed the yen to a six-year lowAccording to Reuters, Monday’s dollar was against on Monday

“It affirmation of its YCC commitment, triggered an aggressive yen selling with USD/JPY rising to a high of ¥125.09, before easing down to ¥123.87 currently,” Catril said Tuesday morning.

The Australian dollarIt was $0.7490. This is a little less than the $0.75 levels before.

— CNBC’s Arjun Kharpal contributed to this report.

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