Hight Level

Russia's budget deficit could be wider than a planned 2% of GDP in 2023 as an oil price cap squeezes export income, Finance Minister Anton Siluanov said, an extra fiscal hurdle for Moscow as it spends heavily on its military activities in Ukraine.

His comments represented Moscow's clearest acknowledgement yet that the $60 per barrel cap, imposed on Dec. 5 by the Group of Seven, European Union and Australia with the aim of limiting Russia's ability to fund the military campaign, could indeed hit state finances.

Stock markets gained on Tuesday after China said it would scrap its COVID-19 quarantine rule for inbound travellers - a major step in reopening its borders.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6%, outperforming an index of global shares, which rose 0.2%. China's bluechip gained 1%.