SOUTH KOREA: Bond Futures Higher After US Rate Pause,

Oil prices are higher today with WTI up 0.8% to $71.31/bbl after a low of $71.13 and Brent steadfy around $75.25/bbl following a trough of $75.05. They rose on Monday driven by news of private talks amongst OPEC members to possibly delay the start of output normalisation again. The USD index is up 0.2%.

• An attack by Ukrainian drones on Russian oil infrastructure has also supported prices. It has resulted in flows from Kazakhstan having to slow. They had been scheduled to run at 1.6mbd this month and next.
• If OPEC again delays its gradual reduction in output cuts due to begin in April, it would be the fourth such postponement. The group had planned to increase production by 120kbd but excess global supply appears to be disrupting the schedule. Bloomberg is saying that Russia’s Deputy PM is denying that talks are underway.
• Market participants are more bearish on oil with prompt spreads narrowing and bullish positions being decreased.
• Later the Fed’s Daly and Barr speak and February US Empire manufacturing and NAHB housing print. There are also UK labour market data, February euro area ZEW and January Canadian CPIs. The ECB’s Cipollone participates in an MNI Connect event.

 *JAPAN 20Y GOVT BOND AUCTION MAY HAVE 99.65 LOWEST PRICE:POLL – BLOOMBERG

Asian equities are mixed today with ranges narrow ahead of the RBA’s policy decision. Hong Kong stocks extended gains, with the Hang Seng China Enterprises Index rising as much as 1% early in the session, driven by tech stocks like Alibaba and Xiaomi. Optimism grew following President Xi Jinping’s meeting with business leaders, signaling a more supportive stance toward the private sector.

• Japan’s markets advanced, with the Nikkei rising 0.40%, supported by gains in defense stocks after European Union leaders discussed increasing military spending. Tech shares also rallied amid expectations that China may ease regulatory pressure on the sector.
• Hong Kong listed equities continue to outperform their mainland peers, with the HSI up 1.20%, while the CSI 300 trades little changed for the session
• Taiwan's TAIEX in unchanged today, while South Korea's KOSPI is 0.20% higher
• Australia’s ASX200 is 0.50% lower as investors awaited the RBA’s policy decision, the AUD is holding near a two-month high. Meanwhile, BHP’s first half profit fell 23%, with weak Chinese demand for iron ore and copper, hurting results

In broader markets, the USD strengthened, while oil held its gains after reports that OPEC+ may delay output increases and Ukrainian drone attacks hit a Russian crude-pumping station.