Nikkei
Japanese stocks declined as the yen extended its advance after Treasury yields fell sharply on bets the Federal Reserve is done with interest-rate hikes.
Topix fell 0.2% to 2,376.71 as of market close in Tokyo. Nikkei 225 declined 0.1% to 33,408.39. The yen gained 0.3%, strengthening for a third day
Hitachi contributed the most to the Topix decline, decreasing 1.9%. Sharp fell the most on the benchmark after JPMorgan cut its rating on the consumer electronics maker, saying there are still hurdles to rebuilding earnings. Out of 2,155 stocks in the index, 1,233 rose and 831 fell, while 91 were unchanged.
"The yen has been appreciating these days, and it is weighing on export-related companies," said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank. The combination of lower US stocks and Treasury yields yesterday also increases pessimism over the US economy, she added.
Hang Seng
Hong Kong stocks finished with another loss Tuesday following a negative lead from Wall Street, with traders focusing on the release of US inflation data later in the week.
The Hang Seng Index shed 0.98 percent, or 170.92 points, to 17,354.14.
The Shanghai Composite Index rose 0.23 percent, or 6.85 points, to 3,038.55, and the Shenzhen Composite Index on China's second exchange added 0.60 percent, or 11.41 points, to 1,904.81.
Gold
Gold closed at the highest in more than a year on Tuesday as the dollar fell to the lowest in three months and treasury yields fell following dovish comments from a Federal Reserve official.
Gold for February delivery closed up US$27.20 to US$2,060.20 per ounce.
The rise comes as the dollar continues to depreciate, with the ICE dollar index last seen down 0.38 points to 102.8, the lowest since August 10.
The dollar has weakened amid expectations the Federal Reserve is done with raising interest rates after a series of weaker than expected economic reports showed the central bank has successfully slowed the economy to bring down inflation. Comments from Christopher Waller, a voting member of the Fed's policy committee, that the central bank could lower interest rates if inflation continues to decline, helped push the currency lower.
Treasury yields also eased, lowering the carrying cost of owning gold. The US two-year note was last seen down 10.8 basis points to 4.747%, while the 10-year note was paying 4.353%, down 3.9 basis points.
Oil
Oil snapped a three-session losing streak as OPEC+ members continued negotiations over output levels and a Federal Reserve official signaled the central bank's rate-hiking campaign may be complete.
West Texas Intermediate rose 2.2% to settle above $76 as the production cartel worked to resolve the deadlock over oil-output quotas for some African nations. The stalemate may not be resolved before the group's scheduled meeting, possibly requiring further delay, one delegate said. Meanwhile in Washington, Fed Governor Christopher Waller said in prepared remarks that he's "increasingly confident" that monetary policy is tight enough to reduce inflation. The dollar also weakened after Waller's comments, making commodities priced in the currency more appealing.
Crude futures have moved into a broad holding pattern ahead of the OPEC+ meeting planned for Thursday, with traders awaiting a decision on next year's output levels. Among the particular hurdles are production quotas for African members Nigeria and Angola, which have frequently underproduced in recent years.
WTI for January delivery increased 2.1% to settle at $76.41 a barrel in New York.
Brent for January settlement rose 2.1% to settle at $81.68 a barrel.
