March 9 (Reuters) - Emerging Asian markets rebounded on Wednesday after a three-day rout as investors bought into regional equities beaten down since Russia's invasion of Ukraine, and after a halt in nickel trading helped modestly stabilise soaring metal prices.
Equity markets in the Philippines (.PSI) and Singapore (.STI) jumped more than 1% each, while stocks in Indonesia (.JKSE) and India (.NSEI) also added nearly a percent.
Prices of oil and other commodities have surged in recent days, raising fears that the military conflict, which Russia calls a "special operation", would stunt the global economic recovery and supercharge inflation that would force central banks to raise interest rates.
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While crude prices remained elevated on Wednesday, market participants looked for further cues on how the conflict would pan out after the United States on Tuesday imposed an immediate ban on Russian oil and other energy imports. read more
Risk appetite also grew after the London Metal Exchange (LME) halted nickel trading and cancelled trades on Tuesday after prices doubled to more than $100,000 per tonne. read more
"After LME halted trading, we are seeing metal prices pull back, broadly alleviating pressure on inflation and this is helping Asia Pacific markets as a lot of them are net importers of raw materials and energy products," said Margaret Yang, a Singapore-based strategist with DailyFX.
Yang said the bounce in markets was also because they were sold so heavily over the last three sessions, but warned of potential further losses as the geopolitical situation remains fluid.
Markets were attuned to the lingering risk as yields on high-returning Indonesian benchmark bonds jumped another 62 basis points to a near one-year high, while those on long-tenor bonds in Singapore also climbed a further 31 basis points.
Chinese shares (.SSEC) extended losses, however, as market watchers were on edge amid fears of the wider impact of commodity prices' surge, while new coronavirus cases in the world's second-largest economy also weighed on sentiment. read more
Thai stocks (.SETI) rose 0.6%, in line with other regional peers, and the baht swung between positive and negative territory. Data showed the country's consumer confidence dropped for a second straight month in February.
HIGHLIGHTS:
** Top gainers on the Jakarta stock index (.JKSE) include Radana Bhaskara Finance Tbk PT (HDFA.JK) up 25.81% and Batavia Prosperindo Finance Tbk PT (BPFI.JK) up 18.98%.
** In the Philippines, top index gainers are Jollibee Foods Corp up 4.76%, Aboitiz Power Corp (AP.PS) up 4.33% and, Manila Electric Co (MER.PS) up 3.94%.
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