Asian markets take a breather amid US ban on Russian oil

Beijing: Asian stocks rebounded on Wednesday after Wall Street declined and Chinese inflation edged higher. Already high oil prices rose further, adding more than $2 per barrel following President Joe Biden's ban on imports of Russian crude. Stock benchmarks in Tokyo and Sydney rose while Shanghai and Hong Kong declined. South Korean markets were closed for a presidential election. Wall Street's benchmark S&P 500 index sank 0.7 per cent amid enduring unease over the impact of Russian President Vladimir Putin's attack on Ukraine. Asian markets seem to be taking a breather from their sell-off, but Wall Street's retreat may drive some wait and see as geopolitical risks show no signs of easing, Yeap Jun Rong of IG said in a report.

The Shanghai Composite Index lost 0.5 per cent to 3,278.54 after China's government reported consumer prices rose 0.6 per cent in February from the previous month and producer prices gained 0.5 per cent. The increase was smaller than in recent months but inflation is likely to surge again given rising global prices for energy and other manufacturing inputs, analysts said. "Inflation will pick up further in the near-term," Julian Evans-Pritchard of Capital Economics said in a report. The surge in global commodity prices due to the Ukraine war "will have a much more pronounced impact on the March figures."

The Hang Seng in Hong Kong slid 1.6 per cent to 20,428.39. The Nikkei 225 in Tokyo gained 0.7 per cent to 24,973.73. Sydney's S&P-ASX 200 climbed 1.1 per cent to 7,054.60. New Zealand, Singapore and Jakarta rose while Bangkok retreated. Benchmark US crude rose $2.41 to $126.11 per barrel in electronic trading on the New York Mercantile Exchange.