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The U.S. Dow Jones Industrial Average rallied 2 percent overnight following a 2-3 percent rally in European markets. The Nikkei was up 0.6 percent on Tuesday while the Hang Seng was up 1.
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4 percent at 2.40 am GMT. "The Chinese market has been reacting irrationally and rather violently, possibly due to heightened speculation derived from the government’s actions to influence the market," Mobius, the Franklin Resources Inc. money manager said. "Fundamentals in China still remain positive.” Comments from the People's Bank of China (PBOC) governor sent the yuan to its strongest level against the dollar for the year, with the dollar-yuan pair at 6.4943 at yesterday's market close. Nevertheless, traders were cautious after China's trade balance for January, released Monday, was weak.
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Brent crude was up 3.2 percent to 34.37 dollars per barrel as energy ministers of Saudi Arabia and Russia, the world’s two largest crude-oil exporters, prepared to discuss production in Qatar on Tuesday. Pressure is on to announce a cut in production during a surprise meeting between Saudi Arabia’s Ali al-Naimi and Russia’s Alexander Novak. OPEC officials say a production “freeze” requiring members and Russia to not pump more than they are now has been mooted, but an OPEC official with a Persian Gulf Arab country said Saudi Arabia’s position remained essentially unchanged, according to the Wall Street Journal.