Asian stocks fall when Putin gives orders to the military in eastern Ukraine

BANGKOK (AP) – Shares in Asia fell sharply on Tuesday after Russian President Vladimir Putin ordered the deployment of troops to separatist regions of eastern Ukraine, believing the long-feared invasion may continue.

The Tokyo Nikkei 225 index fell 1.8% and Hang Seng in Hong Kong fell 3.2% at the start of trading. Oil prices jumped, US oil rose 2.8%. The future for the S&P 500 was down 1.5%, and the contract for Dow Industrials lost 1.3%.

U.S. markets were closed Monday for President’s Day. d

In Europe, shares fell on Monday as investors waited for the crisis in Ukraine. The German DAX gave up 2.1%. In Paris, the CAC 40 in Paris fell by 2%. The British FTSE 100 fell 0.3%.

The Russian MOEX index fell by almost 11%. The ruble depreciated against the US dollar by 3.2%.

Western nations fear Russia could use clashes in Ukraine’s eastern regions as an excuse to attack a democracy that challenges Moscow’s attempts to return it to its orbit.

The vaguely worded decree signed by Putin provided that the order to move troops to eastern Ukraine was an attempt to “maintain peace.” He also recognized the independence of the separatist regions, apparently having given up little hope of preventing conflict that could cause mass casualties, energy shortages on the continent and economic chaos around the world.

The White House has ordered a ban on US investment and trade in the separatist regions, and additional measures were to be announced on Tuesday – possibly sanctions.

In Asian trading, the Nikkei 225 in Tokyo fell 477.52 points to 26,433.46, while Hong Kong’s Hang Seng dropped nearly 793.51 points to 23,376.95. South Korean Kospi lost 1.7% to 2,697.74, while the Shanghai Composite Index fell 1.5% to 3,439.86. The Australian S&P / ASX 200 lost 1.3% to 7,142.60.

Russia is a major energy producer, and tensions have led to extremely volatile energy prices.

Tensions in Eastern Europe have added to uncertainty at a time when markets have been concerned about how the world’s central banks, especially the US Federal Reserve, will act to counter inflation, while coronavirus outbreaks caused by the highly contagious version of omicron are cluttering the forecast. .

“Indeed, Russia’s full-scale invasion of Ukraine will confuse many central banks,” Jeffrey Hali of Oanda said in a report. “The immediate consequence will be an increase in global inflationary pressures when oil reaches $ 130.00 a barrel,” he said.

Oil prices have already risen to their highest level since 2014. Crude oil rose $ 2.57 to $ 92.79 a barrel in electronic trading on the New York Mercantile Exchange on Tuesday.

Brent crude oil, which is the basis of international pricing, added $ 1.45 to $ 96.84 per barrel.

On Wall Street on Friday, the stock ended a week of volatile bidding with a big sale.

The S&P 500 and Dow Jones Industrial Average fell 0.7%. The Nasdaq composite bore the brunt of sales, down 1.2%. Shares of small companies also fell, the Russell 2000 index fell 0.9%.

Treasury bond yields declined as investors shifted money into US bond custody. Yields on the 10-year Treasury, which affects rates on mortgages and other consumer loans, fell to 1.86% by early Tuesday from 1.93% on Monday.

In foreign exchange trading, the US dollar fell to 114.72 Japanese yen from 114.74 yen on Monday at the end of Monday. The euro fell to $ 1.1308 from $ 1.1312.

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