Asian shares steady, investors draw breath as Ukraine resists Russian invaders -Breaking
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© Reuters. FILEPHOTO: A protective mask-wearing man walks past an electronic display board showing the Dow Jones Industrial Average and Japan’s Nikkei Index. This was outside a brokerage located in TSelena Li
HONG KONG (Reuters – After days of volatility in Asian shares, markets paused Tuesday to take a deep breath. Gold was slightly lower and Asian shares were up as investors observed the Ukraine conflict unfold. They also weighed their economic impact, particularly on energy prices.
In the wake of Russia’s incursion in Ukraine, global share markets plunged. Western allies have increased sanctions to include cutting some Russian banks off SWIFT and restricting Moscow’s access to its $630 billion foreign reserve.
The high-level talks held between Moscow and Kyiv last night did not produce any agreement. But Asian markets were reassured that there was no immediate increase in sanctions.
MSCI’s Asia-Pacific share index outside Japan was up 0.5% during early trading.
Australia’s stock market rose 1.38% thanks to tech and financial stocks, while blue chips in China rose 0.5%.
Kerry Craig (Sydney-based global strategist for J.P.Morgan Asset Management) stated that while a lot of market activity has been overshadowed in recent news about Russia and Ukraine in terms negotiations, the most important drivers will be the responses from central banks and governments in terms policy setting.
He stated that markets will focus more on “the broader implications” of energy prices and what it means for inflation in different parts of the globe.
On Tuesday, futures rose by 0.3% to $98.59 a barrel. The benchmark reached a 7-year high of $105.79 following Russia’s invasion. But markets have calmed down, as America and its allies talk about a coordinated release oil stocks to help mitigate any interruption in Russia’s supply of oil and natural gas. [O/R]
On Tuesday, currency markets were relatively quiet after Monday’s plunge to $1.11210.
After plummeting by as much as 30%, Russia’s ruble stabilized. It was at record 120 dollars per dollar when Western countries and allies placed sanctions on Russia. However, Russia’s central banks took action to make it trade back at 102.
After Monday’s fall, benchmark 10-year U.S. Treasury yields climbed a bit from Monday’s drop to 1.8629%.
The price was 0.3% less at $1,902 per ounce after it rose as high as 1,973.96 the previous week. [GOL/]
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