In Asian Equity Markets stocks were mostly higher on Tuesday even as global investor attention remains fixed on the prospect of U.S interest rate hikes in the next few months, after two years of unprecedented pandemic-induced policy easing. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.4 percent. Australian stocks were up 0.29 percent, while in China the blue chip CSI300 Index rose 0.33 percent in early trading. Hong Kong’s Hang Seng Index was up by 0.61 percent. Japan’s Nikkei stock index was trading 0.63 percent.

In Currency Markets the yen edged higher ahead of the outcome of a central bank policy meeting on Tuesday, while the dollar seemingly ignored U.S. Treasury yields hitting new near two-year highs on their return from a long weekend break. The dollar fell as much as 0.15 percent against the yen in early trading to 114.43 yen per dollar, and was also slightly softer versus the pound and euro. The euro was on the front foot at $1.1416, while sterling was steady at $1.3657, after an early rally in both currencies at the start of the year petered out late last week.

In U.S., Equity Markets were closed for the Martin Luther King Jr. holiday.

In Commodities Markets oil prices rose on Monday with investors betting that global supply will remain tight, although restraint by major producers was partially offset by a rise in Libyan output. Brent crude settled up 0.5 percent, to $86.48 a barrel. U.S. West Texas Intermediate crude was up 0.6 percent, at $84.35 a barrel. Spot gold rose 0.1 percent to $1,819.41 an ounce. U.S. gold futures also edged up by 0.1 percent to $1,818.80. Elsewhere, spot silver was up 0.1 percent at $22.97 an ounce, platinum rose 0.4 percent to $974.32 and palladium gained 0.5 percent to $1,887.19.

In European Equity Markets stocks recovered from Friday’s losses on Monday as investors focused on company earnings and U.S. Federal Reserve policymakers entered a quiet period ahead of their meeting next week. Europe’s STOXX 600 was up 0.6 percent, having recovered most of Friday’s losses. The blue-chip FTSE 100 index gained 0.9 percent to record its highest closing in nearly two years, with miner Glencore and energy majors BP and Royal Dutch Shell among the biggest boosts to the index. Unilever shares fell 7.0 percent and were the worst performer on the index.

In Bond Markets treasury yields rose along the curve on Tuesday, lifting the short end to new pandemic highs as traders braced for the U.S. Federal Reserve to embark on rate hikes as soon as March. Two-year yields rose above 1 percent for the first time since February 2020 at the open in Asia as trade in the cash market resumed after the Martin Luther King Day holiday in the United States. Two-year yields track short-term rate expectations and were last up 3.7 basis points (bps) at 1.0054 percent. Benchmark 10-year yields were up about 2 bps to 1.8108 percent in early Tokyo trade.