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Recovery of Wall Street, currencies, oil

SINGAPORE — Asia-Pacific stocks fell on Wednesday despite Wall Street recouping most of its losses at the close. Oil futures rose after plunging overnight.

Japan’s Nikkei 225 fell about 1% and the Topix index 1.09%.

In South Korea, the Kospi fell 0.74%, but the Kosdaq gained 0.82%.

The S&P/ASX 200 in Australia was slightly lower.

MSCI’s broadest Asia Pacific ex-Japan equity index was down 0.24%.

There is no doubt that the recession is the biggest problem facing the markets right now.

Ben Snider

Senior Strategist, Goldman Sachs

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US stock indices first fell sharply on Tuesday in the United States before recovering in the afternoon. The Nasdaq Composite ended the session up 1.75% at 11,322.24, while the S&P 500 was up 0.16% at 3,831.39.

The Dow Jones Industrial Average lost 129.44 points, or 0.4%.

The 10-year US Treasury yield and the 2-year yield reversed on Tuesday in the United States, a closely watched measure that signals a recession. Longer duration yields are generally higher than shorter duration yields. But the 2-year yield was last at 2.8469, above the 10-year yield of 2.8418.

“There is no doubt that the recession is the biggest problem facing the markets right now, both the equity, fixed income and frankly commodity markets,” said Ben Snider, senior strategist at Goldman Sachs, at CNBC’s “Squawk Box Asia.”

In central bank news, Bank Negara Malaysia is expected to release its monetary policy statement today. Analysts interviewed by Reuters expect the bank to raise rates by 25 basis points.

Currencies and oil

The The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 106.464, jumping from below 105.3 earlier this week.

The Japanese yen was trading at 135.2 to the dollar, strengthening more than 136 against the greenback on Tuesday. The Australian dollar rose slightly to $0.6809 after falling against the stronger US dollar.

“The deterioration in the global economy is the main drag on the AUD,” Kristina Clifton, an economist at Commonwealth Bank of Australia, wrote in a note on Wednesday.

In morning trade in Asia, oil futures pared gains but were still trading higher. West Texas Intermediate crude rose 0.82% to $100.32. Brent crude rose 1.14% to $103.94.

The benchmark U.S. oil plunged as much as 10%, breaking the $100 level on Tuesday in the United States before settling down 8.24% at $99.50 on recession fears.

International benchmark Brent crude stood 9.45%, or $10.73, down to $102.77 a barrel.

– CNBC’s Evelyn Cheng contributed to this report.