Volkswacht Bodensee - Asian, eurozone markets rise but inflation haunts outlook

Prices were already soaring in major economies when Russia's invasion of Ukraine sent shockwaves through the global energy, food and commodity markets.

Despite lingering concerns about the US Federal Reserve's next moves to contain prices, Wall Street enjoyed a buoyant session -- especially the tech-rich Nasdaq, which surged 2.0 percent.

Asia was in a similar mood Thursday as Tokyo closed 1.2 percent higher, while Hong Kong and Shanghai also ended in positive territory.

Sydney rose 0.6 percent as Australia posted its lowest unemployment rate -- a smidge under four percent -- in 48 years.

Seoul was flat, meanwhile, as South Korea's central bank raised its key interest rate to the highest level since August 2019 to tame rising inflation.

Analysts had warned overnight that the uncertainty was far from over.

"With a thicker fog of war starting to roll in and engulf the global markets again, it is another worrying setup amid the widespread bearish sentiment out there," Stephen Innes of SPI Asset Management said in a note.

Frankfurt and Paris opened higher as eyes turned to the European Central Bank policymakers meeting on Thursday, with the outlook for the eurozone economy still murky.

Elsewhere, London's FTSE 100 index dropped at the open.

- 'Countervailing forces' -

Data this week from the United States -- the world's biggest economy -- and Britain showed inflation at levels not seen in decades.

The grim outlook was reflected in the latest earnings report from JP Morgan Chase, the largest American bank by assets.

"There's this very strong underlying economy," its chief executive Jamie Dimon said.

But he pointed to "countervailing forces", including rising interest rates, inflation and the war in Ukraine.

"And those things are going to collide at one point, probably sometime next year," he said in a conference call with reporters.

"I'm not predicting a recession... But is it possible? Absolutely."

Analysts said, however, that markets had welcomed an indication that US inflation may be approaching its peak.

Both main oil contracts stayed above the $100 per barrel mark, with fears swirling about global supply constraints over the invasion of Ukraine by Russia -- a major producer of oil and gas.

"The oil complex is heavily fixated on the short-term," Vandana Hari of Singapore-based Vanda Insights told Bloomberg News.

"The prospect of an EU ban on Russian oil will keep the market on edge as long as Ukraine festers."

- Key figures around 0810 GMT -

Tokyo - Nikkei 225: UP 1.2 percent at 27,172.00 (close)

Hong Kong - Hang Seng: UP 0.7 percent at 21,518.08 (close)

Shanghai - Composite: UP 1.2 percent at 3,225.64 (close)

London - FTSE 100: DOWN 0.3 percent at 7,561.35

Euro/dollar: UP at 1.0911 from $1.0894 at 2100 GMT

Pound/dollar: UP at $1.3136 from $1.3109

Euro/pound: UP at 83.07 pence from 83.03 pence

Dollar/yen: DOWN at 125.35 from 125.59

Oil - Brent: DOWN 1.1 percent at 107.63 per barrel

Oil - WTI: DOWN 1.2 percent at 102.98 per barrel

New York - Dow: UP 1.0 percent at 34,564.59 (close)

-- Bloomberg News contributed to this story --

M.Odermatt--BTB