haidi: a very good morning. we are counting you down to asia's major market open. shery: welcome to daybreak asia. our top stories, ukraine says it is open to russia's demand for neutrality, but will not cede any territory to president putin, as he sticks with his invasion order. oil sinks on the chance of compromise while asian stocks may join a global rally. speculation a sanctions impact

is fully priced in. south korea election new conservative president, signaling a hawkish turn in relations with china and north korea. take a look at u.s. futures at the moment. muted at the open with the nasdaq 100 futures up .2% after stocks rallied the most since 2020 and reversed four sessions of losses. we have that dropping. oil prices really causing a wave of dip buying. wti perhaps rebounding a little after falling almost 16% or so at one point in the new york session. this of course as ukraine signaled inmate be ready to compromise -- signaled it might be ready to compromise. and opec might have greater willingness to raise output. watching amazon and the after hours after they announced a big stock split and buyback, up more than 6%. but we could not ask for a

better set up when it comes to asian shares because we have the china index jumping more than 6% in new york. haidi: yeah. then we will be seeing whether some of the asian-based hedge giants we see follow amazon. that was more of an idiosyncratic story with that stock split. take a look at the open in sydney, pretty muted. we are seeing a little bit of downside as we see the staggered open. we will give a little bit of time for that market to ease into things. we are watching certain sectors, defense spending is in focus after the announcement of the 38 billion dollar aussie expansion plan over the next 18 years to boost spending. we're also watching some of the energy stocks. even the back-and-forth we have seen in oil prices. the steep drop we saw overnight on the hopes of potentially opec-plus could come to the table in addition to an overture of more discussions between

russia and the ukraine on these potential discussions on concessions and compromises. kiwi stocks are holding onto robust gains. up by 1.3% despite the credit card spending falling for the first time in six months. nikkei futures going into the start of tokyo looking pretty muted. shery: let's delve into the geopolitical drivers because the top foreign-policy aid to the ukrainian president now says the government is open to discussing russia's demand of neutrality, though it will not surrender a single inch of territory. meanwhile, russian and ukrainian officials are also sparring over risks to gas supply infrastructure, ramping up the pressure on the eu. >> the short-term disruption is so massive and imposing such a big burden on our consumers but also on our businesses that it will no longer be manageable at the level of the national budgets. shery: let's get the latest with jodi schneider. so what does this demand for

neutrality and compromise actually mean? jodi: the ukrainian officials are saying this with a have a big condition attached. is that russia basically withdraw its troops from ukraine and start an immediate cease-fire. they are saying they will be neutral but not cede any territory. not a single inch, came from the deputy chief of staff. so it does not seem to change the picture much. it signals a willingness which of course led to oil prices dropping and a lot of market moves on some tempered optimism. but at the same time it does not really change the picture because ukraine is saying russia needs to leave ukraine and russia is so no signs of doing so, saying that it will not change its strategy at this point. it would agree to talk but it is not going to cede that ukraine has to stop the resistance is

russia's demand. shery: we are seeing the white house weighing potentially more sanctions against a major nuclear supplier in russia and we are also hearing quite a bit of back-and-forth within the eu about the disruption, the warning of the disruption of gas flows as well. jodi: that's right. energy and energy prices are playing a big role throughout the world right now. the u.s. looking for more sentient and more ways to further isolate russia on the world stage. the white house has said it is considering although no decision has been made, sanctioning the largest nuclear energy provider in russia. so, that would be another round of the 10 sanctions on russia. at the same time, we are seeing real fears in europe that their reliance on russia for much of its energy supplies could potentially cause real problems. russia has stated that if the

european bloc tries to reduce too much their reliance on russian energy that russia might pull the plug right away which of course would be very disruptive. to reduce that reliance on energy coming from russia fossil fuels and coal and gas will take some time. months at least. and so this could be a very difficult situation for europe if russia takes real preemptive action. the u.s. of course has banned russian energy imports, but the u.s. only relies on russia for 3% of its crude imports and 8% of overall petroleum products, so they are in a very different situation than european countries which have so much reliance on russia for energy. shery: jodi schneider there. let's get you to vonnie quinn with the first word headlines. vonnie: the united states may

sentient russia's state owned atomic energy company, which is a major -- sources say the biden administration is consulting with the nuclear power industry about the possible impact. no final decision has been made. they account for about 35% of global uranium enrichment, making it a delicate target. germany is broadening sanctions against russia that target the country's biggest bank and the energy sector. multiple sources say berlin is resisting a push from the bloc to add to the list of russian -- the german chancellor also opposed cutting off energy supplies from russia earlier this week. russian and ukrainian energy officials have exchanged warnings about risks to gas infrastructure with each side seeking to distance itself from responsibility. russia has taken control of two of four ukrainian stations that pump natural gas to europe.

however, it said -- russia is heading for one of the biggest inflation spikes this century. it's prompted the collapse of the ruble and disrupted trade. data shows overall prices jumped 2.2% in the first week of the invasion led by cars. bloomberg economics sees inflation picking at an annual 19% around july. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: south koreans have elected their new president, returning the conservative position opposition party to the top house after five years. our bureau chief joins us now for more. so who is yoon, what led to his win in what was a tight race? >> yoon is a former prosecutor

general. he was handpicked by the current president moon jae-in in 2019 to go after the most powerful. but his ties with moon jae-in actually soured after he went after those who were involved with the government members and with moon jae-in. that also led to the resignation of two former justice ministers. of course the top concern for this tight race was the economic part, which actually led to the decisive factor of bringing in the swing voters, the young swing voters. they were most focused on the soaring housing prices. whether the new president could rein in the soaring housing prices that have risen almost double, especially in the capital seoul.

and has led to a lot of families making it very unaffordable to buy a house here. also, there was, again, the inflation was another issue which was accelerated in february and seems like it is not going to slow down with the russian invasion of ukraine. shery: rising prices really a problem globally. yoon suk-yeol, before he went for korea's top job, he had never sought political office. he is a foreign policy novice. so what can expect from him? >> his win actually means that south korea will be embracing more of the military alliance, and stronger ties with washington. that is, stronger embrace of the biden administration's push to bring in the alliance for building a supply chain and for crucial materials such as semi conductors.

this also could mean a chill in relations with china and north korea. especially after he mentioned as a preemptive strike in case of an immediate attack or threat from north korea. this also means that on the domestic front, yoon has vowed to tackle income inequality and social inequality, especially. as well as unemployment, that the younger swing voters were really concerned of. the new leader will take office on may 10. shery: we will be speaking to south korean trade minister from seoul later. don't miss that interview at 10:00 a.m. in hong kong, 9:00 p.m. in new york. still ahead, a venture capitalist tells us how market

volatility has spurred financing in southeast asia, and whether that can be sustained. but next, we speak to ubs about why the oil market lacks the ability to upset russian exports. this is bloomberg. ♪ this is bloomberg. ♪

shery: u.s. futures seeing a little bit of upside with nasdaq futures up .2%. u.s. stocks rallied the most since 2020 in the new york session. we have seen the dollar also wekane -- weaken for the first time in five sessions. the drop in oil prices prompting a wave of dip buying. wti rebounding slightly above the $110 a barrel, but after plunging more than 16% in the new york session. let's get more analysis with our senior editor. what exactly happened in the oil space, and is this sort of a knee-jerk reaction or could the downside be sustained? >> there is definitely a lot of volatility. wti was down as much as 16%, it

closed off about 13%. brent was down about the same. it is a lot of fear and speculation, a lot of markets are moving on headlines. certainly there was some news today. there was news there could be a chance to compromise in ukraine. which that -- which might then ease some of these bans on russian oil. there's also signals from opec members that may be the cartel might be willing to raise output a little bit. those are pretty modest moves. the uae said it did not consult with any other opec-plus members. made those comments. then the energy minister tweeted to not it remains committed to the opec-plus commitment so it might have spoken out of turn. but certainly there are headlines moving markets today. the question is whether prices stay down or this is just a blip. haidi: surely at the prices we are seeing becoming attractive for u.s. shale to come back in. there is now quite a bit of

political pressure too. anne: you would think so but is pretty complicated. this week is the big industry conference in houston and the u.s. energy gave a keynote speech where she said i need oil and gas production to rise. i'm putting my hand out and partnership, i am here. in some ways that is a sign that the domestic u.s. industry was looking for. they did not want to ramp up production if the biden administration was going to be anti-fossil fuels. at the same time, their investors like the discipline they are seeing a couple years ago shale had a bad repetition for bringing on too much capacity and flooding markets and bringing down prices. they do not want to do that. they are being disciplined and everyone is pretty happy. so it is a really delicate balance and i do not know if the government asking will be enough to make a difference. haidi: anne riley moffat there. our next guest says the oil market lacks the ability to offset russian exports.

joining us now is dominic schnider. always great to have you with us. while we are talking about u.s. shale, if producers were incentivized enough to come back in, with that alleviate the problem a little bit at least? dominic: i think in the short-term clearly not goodyes -- clearly not. yes, shale is expected to increase. but in the short-term it is limited. and there is a lot of discipline and complexity throughout the people and the material. so i do not think shale is a solution in the short-term. there are three dimensions a look at. how much volume we move. and the second one is where can supply step in. here have challenges and time is the second dimension. it is not happening overnight obviously.

then rerouting of trade routes. that is not easy. we are looking still at prices to stay at $125. haidi: so you would still stay long energy and energy companies too? dominic: i think i would stay long oil as a hedge against uncertainty. you saw the inverse relationship. it is clear the tragedy in russia and ukraine, the war we have, the big effect to the world economy is the commodities. so you might want to have that kind of assets in your portfolio. things can only go pear-shaped from here, but hopefully not. that is where i would say i would still hold oil. when it comes to energy equities i think they are underpriced. in cheap and relative terms, looking at earnings estimates i would not be surprised up going more than 10%. there is the energy equity, probably a longer-lasting story

to tell. shery: as we speak we are getting the u.s. house of representatives now voting on getting that russian oil ban into effect. this of course as we continue to see this rally bringing together all sorts of sanctions on russia. what sort of impact will really restricting those energy products from russia into the u.s. have on the broader market? dominic: if you look at the common nation, it is very -- at the combination, it is very little crude. on the crude side, very little change. it is more on the product side. where basically we have seen volumes above one million barrels a day. so that is a little bit of a challenge here on the product side. i think it means gas prices at the pump could become more complicated. looking for alternatives,

looking at venezuela is one challenge. then thinking about quickening up a deal with iran, you can see how desperate the world is. i want to repeat is, we already went into this crisis with a very tight market of inventory. we are falling at the fastest pace in a long time. i think that combination means risk for the upside for the consumer. shery: we have some weakness for the west dollar but this oil spike continues, other commodities rally, even with the dollar, significant strength. 2020 highs or so. we're headed towards a fed decision next week as well. where are we going to see the greenback now? dominic: from our perspective we remain quite positive. so many uncertainties here in the volatility but there is something quite clear for us. the fed needs to normalize monetary policy nevertheless. we should not even rule out --

we have an inflation problem in the u.s. that goes beyond commodities. that normalization process -- it gives the dollar and edge. [indiscernible] these currencies can withstand the dollar. shery: where is the yuan going? this chart showing significant strength. dominic: trade weight is a fantastic story. that needs to be seen. i would say it will go higher still. historically you see that relationship. do i need to now really engage

into a long position with the dollar? i doubt it. some of the best benefits cny has, extremely strong relative rates, they should all reverse the next 12 months. more of a sideways move. shery: good talking to you. you can get a roundup of market action and stories that you need to know to get your day doling -- day going. go to davie go on your terminal. you can customize your settings so you only get the news that you care about. this is bloomberg. ♪ s bloomberg. ♪

shery: here's a quick check of

the latest headlines. citigroup's efforts to sell a consumer bank unit in russia have said to have stalled due to the war and ukraine. that raises the prospect that the business might be wound down instead of being passed on to a competitor. sources also tell us citi is helping some employees move out of russia. jp morgan has turned down a role to advise the russian search engine on a potential debt restructuring. the decision came after initial discussions with a group of bondholders. they face the risk of investors holding $1.25 billion of debt will demand to be repaid after trading in its u.s. shares was suspended. amazon is surging in extended trading after reported plans for a 20-1 stock split and an authorized repurchase of up to $10 billion in shares. the split is amazon's first since 1999. back then it was following its

ipo in 1997. they split three times in a less than 2.5 years that followed. all right. we're seeing prime minister scott morrison speaking alongside other officials including the defense minister in brisbane. haidi: we have heard about plans to expand defense spending by 38 billion australian dollars over the next 18 years. this really does also include the 7.4 billion dollar base for nuclear submarines. at least 10 billion australian dollars to be spent for a base for future nuclear summary and. we are also hearing about the expansion of on ground troops. as well as really swell into the most trips we have had since the vietnam war. it is something analysts say will require significant recruitment when it comes to army, air force, and navy.

so we are continuing to get some more details on that. in terms of the number of soldiers they are expecting to take that to a boost of 80,000 by 2040. next, the latest on the chinese nickel giant at if you're a small business, there are lots of choices when it comes to your internet and technology needs. but when you choose comcast business internet, you choose the largest, fastest reliable network. you choose advanced security for total peace of mind. and you choose fiber solutions with speeds up to 10 gigs to the most small businesses. that's virtually everywhere we serve. the choice is clear: make your business future ready with the network from the most innovative company. comcast business. powering possibilities™.

vonnie: this is "daybreak: asia." ukraine says it is open to discussing demands of neutrality as long as it is given security guarantee, although it will not surrender territory to moscow. in an interview with bloomberg, a top foreign policy aide to president zelensky laid out the plans for an immediate cease-fire and plans for withdrawal of russian troops atop the priority list. >> if he asked me whether there is a diplomatic solution, sure, there is. there were three rounds of

negotiation's on the level of the delegations. tomorrow our minister of foreign affairs with the minister of foreign affairs of turkey and with ford minister lavrov. my president is ready to have direct negotiations with president putin. vonnie: blackrock ceo larry fink says russia's invasion of ukraine is causing profound changes to the global economy that will mean higher than expected inflation. he says the war is accelerating the shift away from globalization, and causing a jump in energy and food prices. he blames the situation and what he calls for long-term planning by global governments. president biden is addressing agencies to focus more on the glory crypto market and combating illicit finance. in an executive order signed wednesday, the white house called for coordination rather than what it says has been a scattershot approach thus far. south korea in candidate has been elected president with the

ruling party conceding defeat. he will return the conservatives to power after five years, and he signals a hawkish turn in relations with china and north korea. he will succeed moon jae-in as president in may, and facer parliament where moon's majority party has the majority. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: the chinese in echo company at the heart of this week's short squeeze of the lme is set secured a package of loans to help meet margin calls. for the latest, let's ring in our chief north asia correspondent in hong kong, stephen engle. what are we hearing? stephen: the head of the company is facing potentially billions of dollars of losses on future contracts of nicole, said to be

to the tune of 400,000 tons of nickel on the lme, or larger. that could equate to $2 billion in losses a day. he had a big margin call to address the short-term liquidity screeds. but he is confident -- liquidity screens. late-night meetings that went into the night late tuesday into wednesday morning with local and international banks, trying to line up lines of credit for these banks. eventually, mr. xiang guangda said based on his large nickel holdings and production in indonesia and china, and the rise of the price of nickel, it means the company has good prospects. we are learning from prospects that essentially he has secured a package of loans from chinese and international banks including j.p. morgan chase and

china construction bank and others. there are some terms, like how much extra collateral will be needed, it is still being negotiated. but right now, big shot, as his name is known in commodity circles in china, has, according to sources, secured the bank loans to meet the liquidity squeeze and emerging call. sherry: we saw the lme nickel trading shoot up in the chart. what can we expect with shanghai trading this morning question mark stephen: shanghai is an interesting one because there was a halt yesterday. in the evening session, four contracts began trading, and they plummeted. essentially some nickel future contracts dropped by the daily limit. four out of the five that resumed trading in the evening dropped. about half, i should say, of the shanghai future exchange's nickel contracts remain

suspended. the huge disconnect right now emerging between the lme, which those prices shot up 250% at the peak before trading was halted until march 11. and then shanghai, which has daily limits on ups and downs, it is cap. so there is a disconnect. so they are telling bloomberg news that they will be watching if contracts resume trading again this morning in shanghai and essentially we will see what happens with prices. also questioning whether the lme will begin treating nickel features as expected of march 11. shery: chief correspondent of north asia stephen engle there. the shanghai metal exchange is canceling those trades, the right decision after prices shot up as much as 250% in two days.

ceo of the lme matthew chamberlain spoke exclusively with bloomberg about why the lme's primary responsibility is to ensure responsibility. >> at the exchange, our fundamental possibility is market stability. had we allowed those trades to stand, had we allowed prices to continue to spike up as you see on the graph there, it would have been extremely difficult for some of our market participants to continue their activity. and in the final analysis, i think the sign of a good market, a long-term market, and a fair market, is one where we look to the long-term and we ensure that we will be here not just through this crisis, but for many years to come. for that reason, suspending trading was, i believe, the right decision. >> are you concerned this might

set a precedent. why change a trade if it is going to cancel your transactions? what one trader claimed it was for your own mystery results. is there a concern that the idiosyncratic nature of this hasn't fully explained? >> the reasons are absolutely clear, and i think that showed up on your graph. it was in fact the prices that were being seen during the asian session were becoming disconnected from, i believe, the fiscal reality. we had to step into ensure that the technical market conditions were not taking the price in a direction that would be very unhealthy for the market and for participants. i absolutely understand that some traders may say that reduces our willingness to trade on the lme. i hear that and i respect that. ultimately, i think we will have

more credit in the long term for having come in and made, i believe, the right decision about the long-term future of our market in the financial stability of our market, rather than prioritizing the short-term bargains. haidi: matthew chamberlain, ceo of the lme, speaking exclusively to bloomberg's anna edwards. let's look at the australian nickel of miners, look at how they are faring today. we are seeing a further downside of 9%. trading volume is quadruple the average of this time of day. a torrid session for nickel miners yesterday, the session plunged by 23% and triggered a pause within one hour of the trading session in sydney before resuming trading and cruising almost 5% lower, trimming the biggest losses that it saw since august of 2018. it followed a report from

tsingshan holding group about the fact that it is facing billions of potential losses in the massive short squeeze. the nickel miners saying that it has been given assurances that those shares will not be sold. we will continue to watch to see whether market sentiment changes. but we are still seeing further downside for the nickel miners in this session. shery: let's take a little bit about that sentiment. the broader commodity space is led higher by crude, rebounding a bit from the new york session. remember it left 16% at one point, as ukraine signaled they might be able to compromise with russia. the u.a.e. and iraq also signaling that opec could have greater willingness to raise output. we are now seeing crude above the $110 a barrel. wti trading at the moment. waiting for brent to open. tin posted its biggest plunge in london since 2010, after a

potential ukraine compromise. gold also falling from the 19-month-high, with risk sentiment improving. palm oil falling a little bit, after prices reached a record high, especially with what we have in indonesia, the world's biggest exporter of edible oil, saying that they will tighten their control over shipments. remember, governments are now taking steps to safeguard their domestic food supplies, we have seen them act this way during the pandemic and during supply chain disruptions. we may continue to see more of that as food prices continue to rally. next, cofounder of b capital raj ganguly joins us to discuss how market sentiment will likely affect tech startups and market opportunities in southeast asia. that is next. this is bloomberg. ♪

haidi: recent market volatility has put financing in the spotlight. shery: our next guest is from a firm called b capital. the company has seen a huge boom in southeast asia even with all the uncertainty. let's discuss investment opportunities and the impact on tech startups with raj ganguly, co-founder at b capital. good to have you with us. what are you seeing so far

underground even all the volatility and geopolitical tensions affecting market sentiment? it is really becoming a tale of two two cities. you had two years where all of tech was moving up. now you are seeing that certain sectors will continue to outperform, but you have to pick those sectors well. an example is an area like biotech. they really took their pain last year, and we think it is poised for recovery and, then private markets, where we get the benefit of being long-term investors. so we are a little bit worried about the short-term volatility we have seen in markets in areas like biotech. shery: we saw some of the hottest stocks for the past year really take a plunge. how much do the investors care about profitability at this point?

raj: investors care about profitability, and a return to profitability is a good thing for everyone. unfortunately, i think there is a number of companies in southeast that valuations got ahead of themselves, the companies, really fundamentally strong companies, the profitability and earnings did not support the valuations they had gotten to. india have seen the markets see that and fundamentally think it is a good thing. as private-market investors, we think the correction in public markets is starting to have an impact on the private markets. haidi: is that correction tantamount to seeing a tech bubble burst now, or is there more downside given that we are expecting the path for higher interest rates to come? raj: i will stay away from saying that the tech bubble has burst. i think what you have seen is that there has been a fundamental correction, especially in areas where there

wasn't the profitability to justify the valuations. on the other hand, you are seeing areas like cybersecurity, with everything happening in the world, including in ukraine, we think areas like cybersecurity have a lot of potential. . good thing about southeast asia, it has been on a secular path of growth now for over 5, 6 years, and which the issues between u.s. and china, we don't think that is going to change in the short-term. haidi: china is an interesting one, right? are the pathways to opportunity there narrower, given the downward pressure from the government's efforts to crack down on tech, as well as the insular nature of the country now with that covid zero program? raj: we have a contrarian view on china a little bit. we think china corrected last year, and this year will actually be a good year in

chinese tech markets. our focus on china is only b2b, enterprise software, and health care, very narrowly focused. those are the sectors that the chinese government is excited about, with foreign direct investment. we think the chinese will be one of the leaders over the next two years. haidi: how much interest are you seeing when it comes to investing in new themes like the metaverse? is that something you can find credible opportunities in at the moment, or is it still on the pathway to development? raj: i think the metaverse and web3 and defi, all these areas they are still really early. valuations have been pretty lofty. i think there is some great investment opportunities. where we will focus is on the picks and shovels, on the infrastructure that drives web3, that drives metaverse.

it is not so much our focus to invest on the direct-to-consumer side, and that is where we have seen valuations really get ahead of themselves over the past year. haidi: you highlight india and indonesia as two of the top growth opportunities within asia. what are you seeing in those markets? raj: they are definitely two of the biggest opportunities. we also invest in markets like singapore, vietnam, the philippines, but undoubtedly india -- one of the big things has been the fintech across these markets. . we have been investing in companies in india and indonesia. the next big thing in these markets will be around health care. . you have got a young population of people who are aging, with higher discretionary income, and we think there is some of the early signs that there will be

some real innovations in the health care sector, and maybe eventually in the biotech sector also in both these countries. haidi: great to have you with us, raj ganguly, we appreciate your time. let's get you a quick check of the latest business flash headlines. at&t and discovery are selling $13 billion worth of bonds in one of the biggest offerings ever, to find their media merger. the largest portion of the offering is a 40-your security. books for the sale peaked at $106 billion some of, the strongest demand for such a deal in years. two of huawei's nonexecutive directors in the u.k. have stepped down, amid the company's silence on the war in ukraine. they resigned after huawei declined to publicly condemn russia's invasion. the chinese telecommunications giant has major contracts supplying russian telecom

networks. we have plenty more to come here on "daybreak: asia." this is bloomberg. ♪

sherry: breaking news out of japan, we are getting the february factory output numbers. reducer prices rising 0.8% month-to-month. the estimate was gains of 0.6%,

which means the acceleration of ppi numbers is higher than analysts expected. when it comes to the year on your number, a growth of 9.3% again, after acceleration in those producer price numbers. the numbers for the month of january also revised upwards to eight point 9% acceleration for the months of brewery year-on-year, also 0.8% acceleration month-on-month, this perhaps given the fact that ukraine and the war there probably boosted commodity costs , giving rise to higher prices wind comes to producer numbers. take a look at the south korean won right now as we head towards the open of south korea. they were closed because of the presidential election. right now we are looking at the one-month, looking steady after the korean war plunged to the

may 20 20 low against the u.s. dollar. perhaps they catch up once it comes back online in the onshore markets, given that we are now seeing the dollar falling for the first time. haidi: let's get more, following the election of the country's new president. our reporter joins us from seoul. what are we expecting in terms of the big winners? >> at least one source of possible uncertainty has been removed now that we have the election results in a very close race. investors might find some relief in that the rival has accepted the defeat. so this is good for the markets, that could see a lot more uncertainty -- they could have seen more uncertain see if there had been a recount requested.

typically the south korean market has seen the momentum once a new leader has been elected. where he will not take office until may 10, he might announce some of the new policy changes from the previous administration . that could create new expectations for market investors who may have seen the kospi trading in a bear market. shery: one of those policies could be the administration's plan to phase out nuclear powers. are there any sectors of the korean market we should be watching out for? youkyoung: a lot of investors are going to what the nuclear sector, as well as the construction sector, because this new president-elect is expected to hugely increase

supplies, and one analyst says he might increase housing supply by a double. there could be a huge boost to the construction sector. another place investors are looking at is financials. the financial sector had really regulated and this new president seems market-friendly. so investors are also watching for a possible benefit to the financial sector which might see less regulation than for. haidi: our asian stocks reporter, youkyoung lee, joining us from seoul. these are the stocks we will be watching when stock trading opens up in korea and japan. nuclear stocks in focus, previously rallying on the back of the presidential candidate u.n.i.c.e.f. you's potential win -- yoon suk yeol 's potential win. we will see whether they might he sold off on the news not that the election has concluded. over in japan, sony, she sata

and others are latest companies exiting the russian market over the war of ukraine. we are watching for those reactions too at the start of trading. coming up in the next hour of "daybreak: asia," we speaking to vivek dhar to talk about escalating commodity prices after the ban on russian energy. before that, james lim from dalton investments will be sharing his view of how south korean markets will be affected the election of the country's new president. taking a look at markets, we are seeing the potential for further rallying in asian markets. he had seen a pullback when it came to oil prices and that will give alleviation to the major asian importers of oil, give them a chance to outperform. new zealand is holding onto the bulk of its gains. we have seen the rebound in

global equities, leading to speculation that we may have seen -- we may be seeing the and of the conflict in ukraine. the dollar also pulling back, giving some breathing space to asian currencies. lots more to come. this is bloomberg. ♪

♪ haidi: welcome to "daybreak: asia." sheri: from bloomberg world headquarters in new york, i am shery ahn. haidi: and i am haidi stroud-watts in sydney. our top story, asian stocks set to join a global rally, with the war. oil is edging higher, following a huge slump. ukraine says it is open to

russia's demands of neutrality, but it will not cede any territory. plastic south korea elects a new conservative president, signaling a hawkish turn in relations with china and north korea. shery: japan and south korea coming online, a rally led by consumer discretionary stocks, every sector on the chinese benchmark is in the green. the japanese yen loading the 115 level, very close to 116, against the u.s. dollar. we continue to see the downside pressure after the japanese yen file to the low against the greenback. concerns of rising inflation driving treasury yields higher, and the expectation of rate differentials also being felt across the foreign-exchange space. the 10-year yield in japan is also rallying, 1.8%, as we had seen superlong jgb's facing headwinds from rising treasury yields. we have seen also japan's

february cpi numbers coming in -- ppi numbers coming in above expectations, accelerating faster than expected. and look at the kospi, it is coming back from the residential election day holiday. a big rally in the kospi of 2%. the korean won also rallying against the u.s. dollar and moving towards the 1200 level after falling to the weakest since may of 2020. we are keeping a close eye on a few sectors there, given the victory of korea's conservative candidate, yoon suk yeol,, construction and nuclear energy, policies around the sectors are the complete opposite of the current moon jae-in administration. so those are the sectors we are watching at the open. haidi: yeah, we are seeing a little bit more of that rash to risk. south korea reacting in the wake of the presidential election. we have seen modest upsides in trading in australia.

but even though we see oil edging higher, oil prices in the asian session, we are seeing a retreat when it comes to energy and material stocks. energy stocks in australia are off 3%. defense related stocks, australia has announced that expansion to the tune of almost $28 billion of the country's military. the headcount is expected to grow 30% by 2040, with national security really front of mind at the moment. kiwi stocks, holding onto today's gains. a pretty flat session when it comes to the ozzie and the kiwi. also looking pretty muted is the future session at the start of trading. u.s. futures. in asia, this is what we are seeing when it comes to s&p futures, unchanged. the 10-year yield taking over 1.9%. the picture when it comes to oil, we are starting to see that pick in prices after the biggest drop since november. the fallout of the russian

invasion of ukraine will be continuing to cause volatility across cruise market. futures there rising after jumping 20% in the previous session. we have the uae calling on opec+ to boost output faster. we also have some diplomatic overtures about how much ukraine could perhaps compromise when it comes to neutrality. although not on territory, shery. shery:. shery: let's delve into the south korean election, which will see shifts in a number of policies. he campaigned on a conservative platform that included support for nuclear powers. he also supports the deployment of additional radar defense systems counter china, and closer military and technological ties with the u.s.. our next guest says his pro-business stance will also be welcomed by investors. let's bring in james lim, dalton

investments senior analyst. how much is this rally that we are seeing in korean stocks right now because of the certainty from the election results, and what sectors are you positive about now that yoon suk yeol has won? james: i think the major part of today's rally is due to global markets rallying. i think the market had been expected mr. yoon's win. to some extent, the price action had been already reflected. nevertheless, i view this victory as a moderately positive thing, especially in the sectors that you mentioned, nuclear power and construction. in addition, i think internet stocks could have some benefit from likely regulatory easing. same goes with perhaps the

financials. shery: we do have breaking news at the moment, rio is now saying that they will end all commercial relationships with russian businesses, as we continue to see the fallout on russia, given the ongoing sections on the country because of its invasion of ukraine. rio tinto will be ending all commercial relationships with russian businesses. this, of course, as we are also awaiting the house of representatives in the u.s. to pass bipartisan legislation banning imports of russian oil and energy today. let's go back to you, there are other bigger geopolitical considerations, including, of course, the rally in commodities in south korea, south korea being a huge commodities importer. what will be the repercussions in the south korean market? james: obviously, korea is

facing a very tough environment at the moment, and that is why as stock pickers, we like to focus on areas that can overcome inflation pressures and also avoid geopolitical risks. if for a long-term investor, i think some companies perhaps might be feeling the pain at the moment but for pricing power longer-term, i think those companies can eventually benefit, because usually when they increase the prices, the margins can actually go up for a sustained period. haidi: what sort of policies do you expect from the new government when it comes to perhaps a heavier focus on investors, given that heavy retail take-up?

james: so, the korean retail investors are heavily invested in the stock market. i think that has to increase the attention from mr. yoon on the stock market. he had spoken about the removal of the expected capital gains tax, which will be a very big positive. nevertheless, that requires changing the law, so we would need to see the national assembly actually changing. because right now, the liberal party is still only 60%. the law change will not happen in a short period of time. that will take time. next, i think the focus on corporate governance improvement is something that both candidates have talked about, we

just need to see how they execute on that. haidi: when you look at valuations more broadly at the moment, what do you see that presents long-term opportunities that are relatively well hedged against inflation and against the volatility we are seeing in the short-term? james: in the korean stock market, i think a couple of areas we are interested in is the health care sector, because as you know, the health care sector generally speaking, there margins are very fat. they don't use a lot of the -- cost of goods to manufacture their products. also, often times it is very important to the customer. so that sector has, again, same with the other sectors, have

fallen in valuations quite heavily. if you can pick those companies that are actually having a positive momentum, you could get a very good bargaining for long-term growth. same with the education sector companies, because these are more like internet companies. the way they deliver education is through the internet medium. the business model is pretty similar. they are a very strong hedge against inflation. and i think mr. yoon's election will benefit these companies. haidi: james lim from dalton investments, great having you with us. and we will be speaking to the south korea trade minister life from seoul later, you don't want to miss that interview, it is at 10:00 a.m. in hong kong, 9:00 p.m. in new york. shery: we continue to watch

korean nuclear stocks. they had previously rallied on presidential candidate young sekulow's projected victory. he has won and we are seeing a sea of green. over in japan, these are the latest companies exiting russia over its war and invasion of ukraine. let's now get to vonnie quinn with the first word headlines. vonnie: russia is heading for one of its biggest inflation spikes this century. waves of sanctions over its invasion of ukraine have prompted the collapse of the ruble. overall prices jumped 2.2% in the first week of the invasion, led by domestic cars, which were 17% more expensive. bloomberg sees inflation eking at 19% in july. germany is pulling efforts to throw more sanctions against russia targeting the country's biggest bank and its energy sector.

multiple -- berlin is rejecting a plea to add the banks from s.w.i.f.t. the german chancellor also rejected cutting off energy supplies from russia this week. russian ukrainian and energy officials have exchanged warnings about risks to gas infrastructure, with each side seeking to distance itself from responsibly to. russia has taken control of two out of four ukrainian nuclear stations. but says kyiv is responsible for all gas flows to europe via ukraine. president biden is directing government agencies focus more on the fast-growing crypto market, including combating illicit finance. in an executive order signed wednesday, the white house called pho coordination rather than what it says has been a scatter-gun approach so far. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg.

haidi: still ahead, vivek dhar will be joining us to talk through the escalating commodity prices, the price volatility that we see in the oil markets, as well. sanctions in russia are taking their toll on financial markets. next, ukraine says it is open to discuss russia's demands for neutrality, but it will not surrender a single inch of territory. that is next. this is bloomberg. ♪

shery: taking a look at trading across asia. huge gains for the nikkei, rising as much as 3% at one point. the best day since june of 2021. really reversing those four sessions of losses we have seen. it was at the lowest ends november of 2020, but a really strong day for asian equity markets. we are seeing materials leading gains and information tech. although the energy sector is down. we had seen the plunge in the new york session.

the kospi also coming back from holiday and gaining ground at the moment. the korean won is rebounding from the lowest level since 2020. u.s. and european futures right now, remember, the u.s. rallied the most since 2020. u.s. futures are muted right now, but european futures right now seeing a big upside, the biggest rally since march of 2020 as the drop in oil prompted a wave of dip-buying. there was a bear market earlier this week. we are also watching the last etf tracking russia's stocks, it is set to stop treating next week we had haidi: ukraine says it is open to discussing russia's demands of neutrality but it will not give up a single inch of territory.

also, the biden administration is considering further sanctions on russia's own state owned atomic energy company. for more, let's bring in josh wingrove. let's start off with this overture to more diplomatic conversations. what does neutrality without the cessation of territory look like, and that appealed to moscow? josh: the u.s. has been really cautious of anything that would be framed or allow putin to frame things as aggravating. we have seen this for instance over the course of the day with the discourse of poland's for to transfer those mig jets. i think the u.s. is frankly flat-footed on some of these, as an doesn't know what more kinetic options it realistically has. that's why we are seeing more

talk of further sanctions, and why we are seeing less talk about what other defensive equipment or even offensive equipment that can go there. this continues to be a difficult situation, and the u.s. seems to be really struggling. shery: in congress, the u.s. house of representatives is voting on the russian oil and energy ban. what else can the u.s. administration to at this point? josh: speaker pelosi is hinting at more aid to come, this funding package including ukraine will not be the last of the packages, so i think we should be watching for that. and we will be looking at the oil been to see where that goes, to see without that u.s. can get other countries on board. u.s. is not the only consumer. we will look for other sections of oligarchs for their findings,

for agencies to actually enact those sanctions. chase those assets down. they will keep building pressure. they would say it is deliberate, it gives them options to keep rising. but a really troubling thing in the last two hours was the white house press secretary saying that looked, russian disinformation about ukrainians potentially using chemical or biological-type weapons, not only is that not the u.s. assessment, they fear that both the russia's statements and chinese amplification of those statements, is creating grounds for a false flag attack, in other words, russia using the same weapons against ukraine. shery: our white house correspondent josh wingrove as we continue to watch the house of representatives vote right now. the ukraine, as we said, is open to discussing russia's demands of neutrality, but it says it

will not yield a single inch of territory. ukrainian president the demon zelenskiy's foreign policy aid spoke to -- ukrainian president volodymyr zelenskyy's foreign policy aide spoke to bloomberg. >> we have to be careful about which includes statements. we have many propaganda statements throughout these two weeks of the war. but very important what is taking place on the ground, is a continuation of fighting, continuation of trying to encircle citizens and towns in ukraine, continuation of trying to encircle the capital of kyiv, continuation to encircle big cities in the east of ukraine, kharkiv, continuation of bombarding and shelling over civilian objects in ukraine. so that is why we absolutely are resisting what is said during this war. if u.s. estimate whether there is a diplomatic solution, sure,

we already for a diplomatic solution. theres were three rounds of negotiation on the level of delegations. tomorrow our minister of foreign affairs, will meet with the turkish minister of foreign affairs as well as foreign minister lavrov. our president is ready to have direct negotiations with president putin. we are ready to talk about a large spectrum of topics, but unfortunately, for the time being, we don't see that willingness from president putting himself. so we ask the world community to assist us in these negotiations, to sit down with putin at the negotiation table. >> so you make it clear that for this to be a solution, for there to be a solution, president zelensky will have to sit down with vladimir putin? you still believe that meeting needs to happen? >> it needs to happen in order to bring an end to this awful war. but under no circumstances will it be under putin's rules for his ultimatums.

first and foremost, our precondition for having such negotiations is an immediate cease-fire and the withdrawal of russian troops from the territory of ukraine. haidi: a foreign policy aid to volodymyr zelenskyy, speaking to bloomberg's maria tadeo. coming up next, we will discuss how surging commodity prices, and the war in ukraine, are putting even more pressure on russia's already-squeezed factories. this is bloomberg. ♪ this is bloomberg. ♪

haidi: take a look at asian markets, really trying to rejoin the rebound in global equities that had, s stocks seeing a strong pain. pretty good feature across this part of the world, the nikkei 225 strong gains, over 3%.

also seeing korea reacting to the residential election result with an up week trading session. in australia, more muted gains as we see the reversal in the fortunes of the energy sector, despite oil prices continuing to edge higher. the war on ukraine is piling even more pressure on factories which are already grappling with supply chain problems from the pandemic. our chief north asia correspondent enda curran is with us. the this perfect storm when it comes to a lot of these economies and supply chains that are still recovering from the pandemic. enda: the supply chains were already buckled by the pandemic and now they are being hurt by this glover from ukraine. we have seen wild rides in nickel prices, copper prices and aluminum, raw materials, consumer and household goods

made in asia. i spoke to a lot of factory people in the past week and they all say that our costs are going up, we have seen price hikes of 20% in recent weeks, and they are talking of having to increase prices for and customers. also hearing about daily household goods, everything from toys for your pets, through to the products that you stop in the kitchen. in particular the price of oil, it will have an impact on drastic producers because costs have risen. the expectation had been waiting to this year that may be the producer price surge would rule this year -- would cool this year, but the ukrainian invasion has turned it on its head, and producers now say cost pressures will only increase as long as the war goes on because of the impact on energy and commodity prices.

shery: our chief asian correspondent enda curran joining us from hong kong. of course, we continue to see the market moves in the fx base, the korean won rebounding from the may 2020

>> this is "daybreak: asia." ukraine says is open to discussions all -- as long as it's given security guarantees. a top foreign-policy aid said cylinder ski laid out accommodations for talks. >> you asked me if there is a diplomatic solution. there were three rounds of

negotiations already. tomorrow our minister of foreign affairs will meet with the minister of foreign affairs of turkey and minister lavrov. >> the u.s. may state on atomics energy company, the main supplier of fuel and technology to power plants. sources say the biden administration is consulting with the nuclear power industry about the possible impact and no final decision has been made. the blackrock ceo says russia's invasion of ukraine is causing profound changes to the global economy that will mean higher than expected inflation. on call with global clients, he said war is accelerating the shift away and causing a jumping energy and food prices. he also blamed the situation on what he calls for long-term

planning by global governments. south korean opposition candidate has been elected president with the ruling party conceding defeat. it signals a hawkish turn in relations with china and north korea. he will succeed the president on the 10th of may. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: take a look at the stock market, gains across asia. the nikkei seeing its best day since june 2021, rebounding from that fourth session of losses that we saw this week. the kospi coming back from a holiday seeing its best day in three weeks. sovereign yields seeing a lot of upside with the aussie tenure

yelled at the highest since march of 2020 as well. in the asx 200 were seeing tech and consumer discretionary leading the gains while kiwi stocks are up more than 1%. this positive risk sentiment continues to drive gains amid a global stock rebound? ? . mark, is this all because ukraine may be open? mark: is not surprising when you consider the depth of the debt selloff around the world. especially in europe, an increase of 9% is an extraordinary one day rebound. again the losses have also been export near as well. we will probably get a bit of reality check today as the ecb

meets and it's quite possible their outlook for the year or month ahead is going to be much more shaded now. they'll be concern for the outlook of -- of growth because of the spill over with what's happening in ukraine. that's mode -- more likely to dampen any enthusiasm you're seeing in the past 24 hours for markets. although we've had a pretty decent squeeze, that's not unusual when you think about what happened after the global financial crisis. we had several occasions where markets appear despite higher and then we were still in a downtrend for quite a long time. it certainly a positive that the markets have broken their downtrend for now, but it certainly doesn't mean to say people are going to pile in now. haidi: what a lot of people are saying is that volatility is something we should be bracing for, given the number of quick

rebalancing moves we are seeing over the past few days and weeks. mark: one of the places people will now be looking is in relation to specific investors. bloomberg is running a story that the blackrock hedge fund its positions in russia and had a record loss in february. they're unlikely to be the only person who has huge exposure to russia and other parts of the world, which has suffered enormously in the past few weeks. people are going to have to get used to the fact that there's going to be some pretty high profile losses to be absorbed by markets. the european central bank themselves are getting the big banks in europe to look closely at the balance sheet to see what kind of stress their assets are under after the russian invasion of ukraine.

this process will be going on for sometime and we will be reading stories for several weeks about people who had too much exposure to the most volatile parts of the market and in turn, it has just made short-term trading even more difficult. haidi: mark cranfield there with us. let's get some analysis on what's going on with a mining and energy commodities analyst who joins us now. great to have you with us. what is interesting about the mob this rally is that even before the military conflict, we've been seeing high prices across many assets. even if you assume that perhaps we'll get a diplomatic result or that the conflict starts to ease, do you still expect to see prices staying high? >> in our view, absolutely.

an end to the ukraine conflict is only one part of the story. because how it ends matters. and what exactly would happen with the sanctions that we seen on russia and some of the freeing up we've seen of trade, it becomes more challenging. those issues are likely to take much longer to deal with, so you will sideline russia for a prolonged period. that means a number of commodities have exposure and look extremely tight, given that we've basically sidelined their producer very quickly. haidi: i want to throw up this chart which is a good snapshot of what global commodities in the -- commodities and the shock pricing look like at the moment across a component of the commodities complex. to be able to see the outperformer's in the hot pink, industrial metals and coming in

a close second is blue which signifies energy. when you look at what really has fundamental supply issues, which commodities across the complex really stand out to you? vivek: for me, it's energy. when we look at that chart, i'd like to know how much nickel is priced into that march number. when we look at the prime issue right now, it certainly going to be the energy complex. when you talk about coal, gas, oil markets, the relevance of russia is so strong. their absence is being felt. when you talk coking coal, nearly 10% of global supply in terms of trade. when we talk about russian oil exports, and gas is even higher.

the complex we talk about is certainly an energy problem which is the core issue, but this is resulting in price increases in all energy intensive sectors. we've already seen the impact on high gas prices in europe. we've seen steel mills in spain, fertilizer operations in europe, paper mills as well. this is all going to be the start of what the higher pricing means. shery: do you expect opec-plus? to come to the rescue? we hear the biden administration has talked with the likes of venezuela, the iran nuclear deal may be coming soon. how much will that help? vivek: of all those measures, the one that for us is the most promising, we see the iran deal

having more weight, given how close we are at the moment. the talks have been going on for 10 months. the complication is that russia has now brought in its own sanctions into the conversation and that has potentially delayed or made the situation much harder to resolve. venezuela, very challenging to increase production, and with opec-plus, even though we have some members who have spare capacity, keep in mind the group itself has had to increase production. and underinvestment in supply means are not even reaching current production titles, so how can we boost production even more? and perhaps most critical is that if opec-plus moves upward now, is being done at the expense of russia. so how exactly can we defend opec-plus unity if we start seeing unilateral moves? it will play a big role in the

falling oil prices. i think it's very complicated. just given the politics of opec-plus right now. shery: how complicated is the supply chain issue for the mental side of things, especially when you have the push toward green energy and electrification? at the same time you have to compete with the war with ukraine and defense departments all over the world trying to rearm. perhaps clowning out some of the exports in the green transition as well. -- crowding out some of the exports. vivek: this will be the big medium-term implication. right now we're in a period of very high fossil fuel prices. the green transition is going to accelerate because relatively speaking, the economics have been attractive. it's going to be expensive now for any country to move down

this road aggressively and europe is really primed to do that. they may have to pay more than they bargained for to get there. that could really see a lot of these metals, the lack of supply already, you could see those prices, when you talk about nickel in particular, the electric vehicle industry, a big driver of the nickel demand. what we may see, china has gone down a loan nickel pathway for its electric vehicles. ev cars out of china may actually win this race. these are the medium-term effects of what we are seeing from this elevated tension in russia and ukraine. shery: always good having these talks with you. this as we continue to see the

latest headlines on the coronavirus, cases in south korea confirming 327,000 more cases in the past 24 hours. it's not a new record, but it has already been a couple of days now that we are seeing these new cases pass that 300,000 level. of course it has implications for the broader economy and also for the election of this new president and what it means for living with covid. haidi: we are seeing really strong gains in the japanese session as well in tokyo, jumping by the most since june. joining the global rebound, reassessing the economic impact of what we see as elevated oil prices pulling back a little bit, although they're starting to edge a bit higher in the asian session. gains of over 3%, putting a stop

to the four day slide that had japanese stocks on the brink of a bear market. there's you're seeing some of the stocks we are watching that have announced their exit from the russian market as well. coming up next, why suspending the market was a bad thing to do. an exclusive interview just ahead. this is bloomberg. ♪

shery: the chinese nickel company at the heart of this week's sleep hoping to meet the margin calls for the latest peer let's bring in stephen engle in hong kong. what do we know? stephen: what of story. a couple of days now after that bloomberg exclusive, of course that big short basically squeezing a guy nicknamed bigshot. one of the biggest nickel producers kind of caught in this short squeeze. sources telling us his position on the l.a. me is about 100,000 tons of nickel or even

potentially larger, which could translate to $2 billion of daily losses at those extreme prices we saw in the first couple of days of this week. nickel futures on the lme are halted right now intentionally until march 11. we will wait and see if that comes to fruition with the resumption of trade. we are hearing from other sources there have been some late-night burning the candle at both ends to meet with chinese banks as well as international banks. sources saying the international bank including j.p. morgan chase as well as the china construction bank agreeing to package of loans for mr. bigshot, to meet his short-term liquidity issues, with the big margin call coming due. it looks as though they have secured that for the immediate term. we are hearing that he has told sources after these late-night meetings that he is confident they can meet their obligations,

given its extremely large nickel production capacity both in indonesia and china and the rise in nickel prices that we've seen, but what a story this is. haidi: and plunging mother daily limit in shanghai yesterday. what are we expecting in today's session? stephen: traders will be definitely looking at the futures today because in the late session yesterday we did see at least five of the nickel contracts resume trading. about half of them still remain on traded, four of those five in the evening session dropping by their daily limit after rising by the daily limit the day before. traders will definitely be watching today for questions about will indeed the lme begin trading as set on march 11, and what will happen to prices once it does resume trading?

a discrepancy between the lme and shanghai, where gains and losses daily are capped. haidi: stephen engle there with us with the latest. the london metals exchange said suspending nickel was the right decision after prices shot up as much as 250% in two days. >> as the exchange, how do we allow those trades to stand, how do we allow the price to continue to spike up, as you see on the graph there? it would've been extremely difficult for some of our market to cement sue continued their activity. in the final analysis, the some

of the long-term market and the fair market is one where we do look to the long-term and assure we are going to be here not just through this crisis but for many years to come. i believe it was the right decision. >> are you concerned this might set any kind of precedent? some say why trade within exchange if it's going to cancel your transaction? is there any precedent here, are you concerned that the nature of this has not been fully explained? >> i think the reasons are absolutely clear and i think that showed up on your graph there. it was the prices that were being seen during that session were becoming disconnected from the fiscal reality.

we had to step in to ensure the technical market decisions weren't taking the price in a direction that would be very unhealthy for the market. i absolutely understand that some traders may say that reduces our willingness to trade on the lme. i hear that, i respect that, but ultimately, i think that we will have more credit in the long term and i believe that made the right decision about the long-term future of our market and the financial growth market rather than short-term. shery: matt chamberlain, ceo of the lme. coming up next, chinese equities and will look ahead to the china open, next. this is bloomberg. ♪

shery: south korean stock rising , and a presidential election set to reverse imitations plan to phase out nuclear reactors. we're hearing from japan's prime minister as well speaking for the first time on working with the new president. haidi: the wild ride in chinese

equities continues with the volatility evoking imris of the meltdown back in 2018. sentiment is rebounding today. are we detecting the national pain might be involved here? >> it seems to be the old playbook supporting the market, the csi 300 index falling almost 5% and closing less than zero point 7% lower. in for a wild ride again today. the futures market is pope -- pointing to a stronger open. a pretty strong session in the u.s. overnight with chinese adrs surging after a very strong session. the people i'm talking to this morning are not convinced it's

not the kind of market to get into in the long term. the fluctuations are not going to last is the read right now. shery: our chief china correspondent there with the look at what we can expect in the china session after their rally we saw on wall street. coming up, singapore's minister for transport and trade relations once us to discuss surging oil prices. when he thinks singapore will fully open to all vaccinated travelers us will speak to a south korean minister a day after the country elected a new president. two big interviews you really don't want to miss, as we continue to see the rally across equities in asia with the nikkei now gaining more than 3%. that's it from "daybreak: asia." we had to the start of trade in hong kong, shanghai, and

shenzhen. haidi: china open is next. this is bloomberg. ♪

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>> good morning from the asia-pacific. welcome, you're watching the china open. your top story today, were looking at these markets, asia joining the debt buying rally, oil recovering following a net slump. markets boosted by t