Asian equities started the session with moderate gains amid higher oil prices after the OPEC+ meeting cancellation. Higher energy costs could fan the inflationary stresses adding to the case for the Global Central Banks to temper emergency stimulus in the months ahead. The collapse of OPEP+ talks has sent WTI and Brent contracts climbing toward $80 a barrel and raises the risk of a price war if the conflict escalates, like in March last year.
In China, on the equity markets, traders will be keeping an eye on inflation hedges. Risks will keep rising as commodity prices surge as around 30 A-share listed companies in China recently signed contracts to hedge increases in commodity prices and currency risks due to Yuan appreciation.
