MARKET UPDATE

Asian markets steady as investors await Fed chair’s testimony

Asian financial markets were little changed on Tuesday as investors awaited congressional testimony from Federal Reserve Chair Jerome Powell due to start later in the day for clues on the central bank’s next move on interest rates.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat after U.S. stocks ended the previous session with mild gains. The index is up 2.9% so far this month.

The yield on benchmark 10-year Treasury notes reached 3.9675%, compared with its U.S. close of 3.983% on Monday.

The two-year yield, which rises with traders’ expectations of higher Fed fund rates, touched 4.8945% compared with a U.S. close of 4.894%.

Australian stocks were dragged down by resource majors BHP Group (NYSE:BHP) and Rio Tinto (NYSE:RIO), which analysts said were weaker on the back of China’s growth

 

Oil prices advance on China optimism

Oil prices rose to multi-week highs on Tuesday as bets on a strong economic rebound in China were furthered by better-than-expected trade data, although anticipation of a testimony by Federal Reserve Chair Jerome Powell kept broader sentiment muted.

China logged a record trade surplus in February, with exports shrinking less than expected as the country’s manufacturing sector rebounded from pandemic-era lows. A robust trade balance bodes well for China’s overall economy and is likely to spur growth in the coming months.

But local demand in China still showed no signs of recovery, with imports shrinking far more than expected in February. The trend could indicate a somewhat staggered recovery in the world’s largest oil importer.

Brent oil futures rose 0.3% to a five-week high of $86.42 a barrel, while West Texas Intermediate crude futures rose 0.3% to a three-week high of $80.67 a barrel by 23:47 ET (04:47 GMT). Both contracts closed higher in choppy trade on Monday.

Both contracts were also set for a sixth straight session of gains and were now trading slightly positive for the year.

 

Hooked on growth, bitcoin investors turn to smart tokens

For investors living on the digital edge, bitcoin is starting to look a little old-fashioned.

Hooked on high growth, some are turning away from the original cryptocurrency – designed as an alternative to regular cash – in favour of its descendants created as native tokens of blockchain platforms that host smart contracts and apps.

MarketVector’s Smart Contract Leaders Index, which tracks major tokens of this kind – including ether, dot and solana – is up 36% in 2023, outpacing even bitcoin’s 33% rise. Solana’s token is up 76% this year.

Bundeep Rangar, CEO of crypto-focused asset manager Fineqia, said he expected the biggest crypto returns to come from smart contract tokens on platforms that support decentralized finance (DeFi) apps.

“Those are ones that you will find capital appreciation, similar to what a growth stock will be,” he added.

Some investors in the $1 trillion world of digital assets appear to agree, according to CoinShares data which shows investment products tracking ether and solana have seen small inflows even as bitcoin products suffered four consecutive weeks of outflows.

Around seven of the top 20 biggest crypto assets are smart contract tokens, including ether and dot, solana and cardano.

BofA analysts also pointed to smart contract tokens and the blockchain-based applications they power as similar to growth stocks in the equities world, typically technology shares.

 

 

 

 

 

 

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