SYDNEY, NSW, Australia – Stocks in Asia began recovering on Wednesday despite the fallout from the U.S. and UK ban on Russian oil and gas imports. The U.S. is now working to address the loss of Russian supplies, even talking to Iran and Venezuela to help offset the anticipated deficit.
“The oil shock by nature is an accruing one, not a one-off, and the potential for the market to hit $150 before returning to $100 is easier for investors to digest,” Stephen Innes, managing partner at SPI Asset Management told Reuters Wednesday.
“Putting in force sanctions without first developing surrogate supply contingencies risks Brent crude going much higher.”
Despite oil concerns, investors weighed into some markets to buy stocks steeply discounted from recent sell-offs.
In Japan, the Nikkei 225 declined 78.42 points or 0.30 percent to close Wednesday at 24,717.53.
China’s Shanghai Composite fell 37.14 points or 1.13 percent to 3,256.39.
The Australian All Ordinaries climbed 78.90 points or 1.09 percent to 7,331.80.
In New Zealand, the S&P/NZX 50 added 113.74 points or 0.46 percent to 24,904.69.
Hong Kong’s Hang Seng was down 225 points in the last minutes of trading.
On foreign exchange markets during the Asian trading zone, the U.S. dollar drifted lower on profit-taking. The euro edged up to 1.3014 by the Sydney close Wednesday. The British pound firmed to 1.3114. The Japanese yen was little changed at 115.85. The Swiss franc traded in a tight range around 0.9289.
The Canadian dollar inched up to 1.2869. The Australian and New Zealand dollars gained ground to 0.7295 and 0.6817, respectively.
Overnight on Wall Street, the Dow Jones industrials fell 184.74 points or 0.56 percent to close Tuesday at 32,632.64.
The Nasdaq Composite lost 35.41 points or 0.28 percent to 12,795.55.
The Standard and Poor’s 500 shed 30.39 points or 0.73 percent to 4,170.70.