Strategists at Goldman Sachs Group Inc. advocate a rotation to commodity-heavy Australia and recommend being overweight on the energy sector.
Acknowledging the fast-evolving situation, here’s a look at Asian shares that are affected by the Russia-Ukraine conflict.Raw material prices traded higher following the invasion, with the Bloomberg Commodity Index touching 2014 highs this week. In Asia, energy and oil producers continued a rally that started last year given economies reopening following the pandemic. Australia’s Woodside Petroleum Ltd. and Santos Ltd.
Firms like Singapore-listed Wilmar International Ltd. and Thailand’s Charoen Pokphand Foods may benefit, he added. Shares were down 5.7% and 1% this week respectively.Shares of companies that count Russia and Ukraine as their end markets have plunged. Russia-based United Co. Rusal International’s shares slumped 22% in Hong Kong this week. The company gets about a fourth of its annual revenue from Russia, according to data compiled by Bloomberg.
The sector’s shares have dropped even as the Semiconductor Industry Association said Russia’s invasion of Ukraine doesn’t represent a threat to chip supply.