In Asia stocks rebounded by joining a rally in U.S. and European shares as a rise in U.S. home sales fueled speculation the world’s largest economy can withstand higher interest rates. China Coal Energy (HK:1898) jumped 10% in Hong Kong after Citigroup Inc (NYSE:C) upgraded its recommendation on the stock amid speculation the nation’s four biggest coal producers will increase prices in June. Toyota Motor Corp. (NYSE:TM) advanced the most in two weeks after the company announced it will invest in Uber Technologies Inc.
USD/JPY was unchanged around 110 yen after Goldman Sachs Group Inc (NYSE:GS) predicted the Japanese currency would slide 12% by this time next year.
Crude oil rose as high as $49.35 a barrel on Tuesday as weekly U.S. industry data showed stockpiles declined, easing a glut. Inventories dropped by 5.14 million barrels last week, the American Petroleum Institute was said to report. Figures from the Energy Information Administration on Wednesday are also forecast to show supplies fell.
In the US stocks rose more than 1% on Tuesday as investors made peace with the possibility that the U.S. Federal Reserve might soon raise interest rates. The S&P 500 rallied 1.37% to 2,076.06. Stocks rose in the banking sector, which stands to gain from higher interest rates. Bank of America (NYSE:BAC), Citigroup and JPMorgan (NYSE:JPM) all rose more than 1.4%. After the bell, Hewlett Packard Enterprise (NYSE:HPE) jumped 9.6% after it said it would spin off its Enterprise Services (NASDAQ:EFSC) business and merge it with Computer Sciences Corp (NYSE:CSC), which rose 25%.
In Bond Markets U.S. Treasury prices fell on Tuesday, with the two-year yield touching two-month highs, but prices bounced off session lows when robust demand at the $26 billion note auction offset pressure from a stock market rally and strong U.S. home sales data. Benchmark 10-year Treasury prices were down 5/32 in price for a yield of 1.859 percent, up 2 basis points from Monday. The two-year Treasury yield was up as much as 3 basis points to a two-month high at 0.930 percent before easing to 0.909 percent, up 1 basis point on the day.
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