Equities mostly rise on optimism over talks between Ukraine and Russia aimed at ending their month-long conflict, while there was further support from another drop in oil prices.

Traders have grown increasingly confident about shifting back into stocks as diplomats work to find a peaceful solution to the Ukraine conflict.
Traders have grown increasingly confident about shifting back into stocks as diplomats work to find a peaceful solution to the Ukraine conflict. (AP)

Asian shares were higher after an advance on Wall Street ahead of another round of peace talks between Russia and Ukraine.

Crude oil prices fell further after sinking 7 percent on Monday.

Trading has remained choppy as investors try to gauge what’s next for inflation and the global economy as the repercussions of Russia-Ukraine conflict continue to play out.

Ukrainian forces have reportedly retaken a Kiev suburb and an eastern town from the Russians in what is becoming a back-and-forth stalemate on the ground, while negotiators began assembling in Türkiye for another round of talks on Tuesday aimed at stopping the fighting.

Ukrainian President Volodymyr Zelenskyy said his country could declare neutrality to secure peace, but would prioritise protecting its sovereignty and territory.

READ MORE: How Iran became a beneficiary of the Russia-Ukraine war

All major indices up

Tokyo’s Nikkei 225 rose 0.6 percent to 28,110.73 and the Kospi in Seoul added 0.3 percent to 2,737.05. 

The Hang Seng in Hong Kong picked up 0.6 percent to 21,826.68, while the Shanghai Composite index lost 0.2 percent to 3,207.64 as the city entered a second day of a lockdown to combat a Covid-19 outbreak.

Australia’s S&P/ASX 200 surged 0.7 percent to 7,467.20. Its government plans to increase spending on national security while reducing costs for households, in part by reducing a tax on gasoline, Treasurer Josh Frydenberg said before presenting a budget proposal on Tuesday.

Weak oil prices

Weaker oil prices helped push shares higher, said Yeap Jun Rong of IG.

“China, Japan, South Korea and Taiwan are major oil importers, hence lower oil prices may be deemed as positive for their economies,” Yeap said in a commentary.

US crude oil lost 71 cents to $105.21 a barrel in electronic trading on the New York Mercantile Exchange. On Monday, it slumped 7 percent and Brent crude, the international standard, fell 6.8 percent.

Brent crude shed 84 cents to 108.65 per barrel in London.

The latest retreat in oil prices followed the news of China’s most extensive coronavirus lockdown in two years to control a growing outbreak in Shanghai. That could put a dent in global demand for energy.

Oil prices remain volatile amid the backdrop of Russia’s incursion into Ukraine. The United Arab Emirates’ energy minister doubled down on Monday on an oil alliance with Russia, saying that nation, with its 10 million barrels of oil a day, is an important member of the global OPEC+ energy alliance.

Oil prices are up about 40 percent globally over concerns about tighter supplies as demand remains strong. Higher oil prices are also raising concerns that already persistently high inflation could be worsened, further threatening global economic growth.

READ MORE: Could China benefit from the Ukraine crisis?

Source: TRTWorld and agencies