BEIJING (AP) – Asian stock markets fell on Monday, and oil prices rose amid concerns about a possible Russian invasion of Ukraine.
The Tokyo benchmark index fell by an unusually large daily margin of 2.6%. Shanghai, Hong Kong and Seoul also retreated.
On the Wall Street benchmark, the S&P 500 fell 1.9% on Friday after the White House urged Americans to leave Ukraine within 48 hours. Other governments, including Russia, have expelled diplomats and their citizens from the country.
Russia is one of the largest oil producers. Any military action that disrupts supplies could shock global energy markets and industries.
“Markets are waking up late to the geopolitical risks posed by Russian military action against Ukraine,” the Rabobank report said.
The Nikkei 225 in Tokyo fell 2.6% to 26,970.34, while Hang Seng in Hong Kong lost 1% to 24,665.17. Cospi in Seoul retreated 1.6% to 2,703.06.
The Shanghai Composite Index fell 0.4% to 3,448.46, and the Sydney S & P-ASX 200 rose 0.6% to 7,257.70. New Zealand and Jakarta refused, and Singapore has not changed.
Investors were already apprehensive about the Federal Reserve’s plans to curtail economic incentives to cool inflation, which is at its four-decade high, and as to how soon Europe and other central banks will follow suit.
The S&P 500 fell to 4,418.64 on Friday, the fourth weekly loss in six weeks after President Joe Biden’s national security adviser, Jake Sullivan, said the threat of a Russian attack was “immediate” for Americans to leave Ukraine.
The Dow Jones Industrial Average lost 1.4% to 34,738.06. The Nasdaq composite fell 2.8% to 13,791.15.
Investors have moved money into treasury bonds, gold and other assets that are considered safe havens.
The market price of 10-year Treasury bonds rose, reducing yields or the difference between the daily price and the payout, if it remained until maturity, to 1.91% from 2.03% on Thursday.
Treasury bond prices have fallen based on expectations that the Fed will raise interest rates as much as seven times this year. If the Fed manages to cool inflation, it will increase the purchasing power of bond payments, making them more attractive investments.
In the energy markets of electronic trading on the New York Mercantile Exchange, US reference oil rose by $ 1.52 to $ 94.62 per barrel. On Friday, the contract increased by $ 3.22 to $ 93.10. Brent crude, which is the basis of international oil prices, rose in London by $ 1.36 to $ 95.80 per barrel. Over the previous session, it increased by $ 3.03 to $ 94.44.
The dollar rose to 115.50 yen from Friday’s 115.27 yen. The euro rose to $ 1.1349 from $ 1.1334.