By Andrew Galbraith

SHANGHAI, (Reuters) – Global stocks fell, the yen rose, and U.S. Treasury values rose as more investors sought refuge in safe haven assets, amid rising fears about a Russian invasion of Ukraine.

U.S. Secretary Antony Blinken claimed that Russia is likely to invade Ukraine as soon as possible, 24 hours after separatists demanded Moscow’s assistance in repelling “aggression”. This came amid explosions rocking Donetsk (an eastern breakaway city).

This week, the crisis grew after Russian President Vladimir Putin sent troops to parts of Ukraine. It triggered sanctions by Western countries.

Volatility has been rising in the asset market, as oil prices rose to $100/barrel and Wall Street’s Fear Index (Cboe Volatility Index) increased more than 55% during the last nine days.

Stocks in America took a tumble overnight. The downtrend was 1.38%, just above what would have been expected to confirm a correction. Global equity market gauge, the, fell to its lowest level in over a year.

The selloff in Asia continued on Thursday with no sign of slowing down.

MSCI’s Asia-Pacific broadest index fell 1.0% during early trade. Australian shares dropped 2.67%. The Tokyo index was lower at 1%. Chinese blue chips fell 0.5%

Investors are also concerned about the possibility of tightening policy by the U.S. Federal Reserve in an effort to combat rising inflation.

Tapas Sterickland (director of economics, National Australia Bank) said that a supply shock for commodities and the necessity for a higher geopolitical premium might mean inflation stays elevated for longer with the possibility the hiking cycle will need to be steeper.

Although expectations for an aggressive 50-basis point hike by the Fed at its March meeting are now less likely, Fed futures still predict at least six rate increases this year. [FEDWATCH]

The benchmark U.S. 10-year yield reached 1.9581% on Thursday, compared to its close at 1.977% Wednesday.

Global flight to safety has boosted the Japanese yen with the dollar falling 0.05% at 114.91. At $1.1281, the euro fell 0.2% and the, which compares the greenback to other currencies, rose at 96.344.

After falling by more than 33% Wednesday, the Russian ruble firmed slightly against the dollar.

Markets now price more accurately the possibility of something terrible happening. It is an awful environment. Rob Carnell of ING, Asia Pacific research head said that nobody wants to be exposed.

A barrel cost $93.03 an average of 1.01% more. The price per barrel also increased by 1% to $97.7

It traded at approximately 0.1% more than the $1,911.86 an ounce price. [GOL/]