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Asian stocks are bouncing as oil hits a two-year high

Following the Wall Street rebound, shares in the Asia-Pacific jumped and oil rose to a two-year high as investors reassured investors that the Federal Reserve would continue to boost the economic recovery from the coronavirus pandemic.

On Tuesday afternoon in Asia trading, Japan’s Topix rose 3.1 percent and Australia’s S & P / ASX 200 rose 1.8%. India’s benchmark Sensex index rose to 0.8 percent to a record high, while China’s CSI 300 Shanghai and Shenzhen listed stock index rose 0.5 percent.

The movements followed a bounce for U.S. stocks on Monday, the S&P 500 will close 1.4 percent. US shares fell the previous week After the Federal Reserve reached a more frightening tone, rising interest rates have sparked fears that the global economic recovery could be hampered.

But market sentiment gained momentum on Monday through darker comments from Fed officials, President Jay Powell said in a statement prepared before Tuesday’s congressional testimony that the central bank “will do everything it can to complete the recovery while it needs to help the economy.”

John Williams, President of the Federal Reserve Bank of New York, he also said That the U.S. economy was not yet ready for the central bank to start throwing back heavy subsidies.

Jean Boivin, head of the BlackRock Investment Institute, said “new approaches to the Fed will not soon lead to significantly higher policy rates.”

“We may see market volatility… But we are committed to investing and examining any turbulence,” Boivin added.

The futures of the S&P 500 rose 0.2 percent in Asian trading on Tuesday, while those of the FTSE 100 in London rose 0.3 percent.

Commodity prices, which suffered from concerns about global economic outlook last week, rose. Brent crude, an international oil benchmark, rose 0.3 percent to $ 75.14 a barrel, surpassing the $ 75 mark for the first time since April 2019.

Brent is more than 50 percent this year, highlighting the high demand ahead of next week’s Opec + meeting.

Bitcoin stabilized after falling sharply in response to a warning The People’s Bank of China said on Monday that the country’s state-owned banks and payment platforms should “investigate and identify” accounts that facilitate cryptocurrency trading and block such transactions.

Cryptocurrency rose 1 percent on Tuesday to $ 32,881, but fell 6.5 percent this month.

The bond market stabilized after gains that continued to move in the opposite direction on Monday, when investors abandoned the security of government debt and returned to stocks. The U.S. 10-year treasury yield was 1.492% in Asian trade.

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