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Asian Stocks Down as Russian Invasion of Ukraine Intensifies -Breaking


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By Gina Lee – Asia Pacific stocks were down on Friday morning, with investors weighing the escalating Russian invasion of Ukraine and the global growth risks from soaring costs of commodities including oil.

Japan’s fell 1.90% by 9:44 PM ET (2:44 AM GMT). In the morning, the was at 1.2 while the was at 2.8% for January 2022.

South Korea’s fell 1.13%, with the consumer price index growing 3.7% and 0.6% in February.

The Australian economy saw a decrease of 0.86% and a rise in 1.8%.

Hong Kong’s slid 2.19%.

China’s was down 0.27% while the was down 0.35%.

U.S. Treasuries rose, and the benchmark 10-year yield fell below 1.80%. Expectations of slow economic growth are indicated by the smaller gap between 2-year and 10-year yields.

According to the most recent news, Russia has begun shelling Enerhodar’s Zaporizhzhia energy plant. Some investors warned that the West’s sanctions in response to the invasion are creating risks including high raw material costs, as well as damage to global confidence that could decrease investment and the potential for credit stress to ripple through markets.

Slowing profit growth, tightening liquidity, and valuations that have yet to become cheap were already challenges, and “what you are seeing on the geopolitical front is only exacerbating those issues,” Richard Bernstein Advisors LLC deputy chief investment officer Dan Suzuki told Bloomberg.

Russian President Vladimir Putin said to his French counterpart Emmanuel Macron he will fulfill his goal of invading Ukraine. The U.S. stepped up sanctions, targeting eight wealthy Russians and their families, while S&P Global (NYSE:) Ratings slashed Russia’s credit rating for the second time in a week.

Central banks’ monetary policies were also on investors’ minds. Jerome Powell (the Chairman of the U.S. Federal Reserve) reiterated the central bank’s intention to increase interest rates and stressed the Fed would not act in haste.

Powell said that Russia’s invasion was threatening growth and inflation. He again backed a quarter-point interest rate hike later in the month, but added, “we are prepared to raise by more than that” at one or more meetings if the move fails to bring inflation down.

“Rising commodity prices are a big concern for the market, prompting fears of stagflation. This war has a key economic point: commodity prices. Higher energy prices, slowing growth, and surging inflation are not a good outlook,” City Index senior financial markets analyst Fiona Cincotta told Bloomberg.

U.S. data on Thursday revealed that there was 56.5 for February, and 215,000 filed in the week prior. Investors await today’s U.S. job report. This includes.

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