By Scott Murdoch

SYDNEY, (Reuters) – Asian benchmarks fell on Tuesday due to concerns about a possible Russian invasion of Ukraine.

MSCI’s Asia-Pacific share index was 0.4% lower in early regional trade on Monday, as European stock markets fell.

was down 0.2% while in Australia, the S&P/ASX200 was off 0.32%.

Hong Kong’s stock index dropped 0.52% during the session. But, China’s CSI300 Index rose 0.2%.

Marcella Chow (NYSE:) Asset Management, Global Markets Strategist at JPMorgan (NYSE) stated that geopolitical risks will drive sentiment in markets this week.

We expect to see investors flee to safety, in U.S. Dollars and longer-term Treasuries.

Overnight the dropped 0.49%, lost 0.38%, and was flat. It also fell 0.24 points.

On Monday, oil reached its highest point in seven years during U.S. trades. However, it fell slightly in the Asian session due to Russia-Ukraine tensions.

On Monday, the United States warned that Russia might soon invade Ukraine. Antony Blinken Secretary of State said Monday that the U.S. Embassy in Kyiv would be moved to Lviv due to “dramatic acceleration” of Russian forces’ buildup.

“There are concerns about the possibility of the biggest military action in Europe since the Second World War,” said James Rosenberg, EL&C Baillieu financial adviser.

The market has not had any impact so far. The Russians could attack Ukraine and this could alter the situation dramatically.

Group of Seven major economies (G7) declared that there will be “economic and/or financial sanctions” which could have devastating and immediate implications for the Russian economy.

MSCI Inc is a global index provider that monitors developments in Ukraine. It also said it would be able to access the Russian equity market.

Benchmark’s yield stood at 1.9753, compared to Monday’s close in the United States of 1..996%. Two-year yields rise as traders expect higher Fed funds rates. It was 1.562%, compared to 1.589% at the U.S.

Futures markets still point towards the possibility of the Federal Reserve increasing interest rates during its March meeting, despite tensions between Russia and Ukraine.

In a Tuesday note, ANZ economists stated that “Global financial markets have been caught between high inflation and geopolitics (Ukraine).”

After a 7-year record, the Asian session saw a 0.61% drop to $94.88 per barrel. The barrel was $0.4% lower at $96.12 a barrel.

The price of gold was slightly more. The price of gold was $1,870.92 a pound. [GOL/]