Shanghai, Tokyo, Hong Kong and Southeast Asian markets declined as President Vladimir Putin’s invasion fed fears of global economic turmoil. Seoul gained and Sydney was little-changed.The war is adding to worries about global economic growth in the face of plans by the Federal Reserve and other central banks to fight surging inflation by raising interest rates.
Oil prices rose despite an agreement by the United States and other major governments in the International Energy Agency to release 60 million barrels from strategic reserves to stabilize supply. “Markets dismissed the notion that 60 million barrels of strategic reserves released will be consequential to the risks of Russian supply jeopardized,” said Tan of Mizuho. “Russia pumps more than that in just six days.”
The Nikkei 225 in Tokyo lost 1.7% to 26,386.69 and the Shanghai Composite Index shed 0.4% to 3,474.45. The Hang Seng in Hong Kong sank 1.1% to 22,518.18.Sydney’s S&P-ASX 200 added 0.1% to 7,106.40 after government data showed Australia’s economy grew by 3.4% in the final three months of 2021 over the previous quarter and consumer spending was strong.
Prices of wheat, of which both Russia and Ukraine are important exporters, have risen more than 20% over one month ago.