By Gina Lee

Investing.com – Asia Pacific stocks were down on Thursday morning, with the focus squarely on the crisis in Eastern Europe. Russian President Vladimir Putin asked for assistance. This could result in Russian troop deployments.

Japan’s was down 0.89% by 9:49 PM ET (2:49 AM GMT)

South Korea’s fell 1.71%, with the keeping its interest rate unchanged at 1.25% as it handed down its policy decision earlier in the day.

Australia’s unemployment rate dropped to 2.42%

Hong Kong’s fell 1.87%.

China’s was down 0.26% and the edged down 0.17%.

Separatist leaders from Ukraine’s Donetsk and Luhansk regions, or Donbas, have sought Russian help to repel Ukrainian forces. Russia’s Federation Council, Russia’s highest house, gave Putin recent unanimous consent to deployment of “peacekeepers” in the Donbas as well as other parts. Russia denies that the United States warned it about its plans to invade Ukraine.

With the U.S. joining German sanction on Nord Stream 2 pipeline, which links Russia and Germany, the West also increased sanctions against Russia.

High inflation continues to fuel fears that Ukraine will impact commodity prices and may force central banks into tightening monetary policies.

On Thursday oil prices rose as investors considered the risks of Russian exports and the possibility that some strategic reserves could be released to limit them.

“Expect volatility to really persist in the next few months,” BNY Mellon (NYSE:) Investment Management senior market strategist Lale Akoner told Bloomberg. Geopolitical risks are flaring at a “very inopportune time” since markets are grappling with receding stimulus support, she added.

Although Putin remains open to “diplomatic solutions”, Russia’s interests and security must be guaranteed, he insisted. Volodymyr Zelenskiy, president of Ukraine, said that his country is not a threat to Russia and would defend himself if threatened in an address to him.

Mary Daly of Federal Reserve Bank of San Francisco stated that while she monitors the situation, she has yet to see anything which would stop her supporting an interest-rate increase in March 2022.

“Policy mistakes at this point in time are almost guaranteed,” Banríon Capital Management president Shana Sissel told Bloomberg. “The question isn’t, is there going to be a policy mistake, but how bad will it be? Will the Fed hike too much too fast, will they front-load everything?”

Daly’s Fed colleagues, Loretta Mester and Raphael Bostic, will speak later in the day.

U.S. data (including the and) is due in the later part of the day. Additional data including the and are due one day later.

Meanwhile, Alibaba (NYSE:) Group Holding Ltd. is likely to announce a significant drop in profits, which may impact shares prices.