Asia’s major markets slowed their retreat on Wednesday after sharp falls at the start of the week amid the Ukraine crisis and fears of rising inflationary pressures, while Russia’s rouble tumbled as the United States slapped an import ban on its oil.
US President Joe Biden imposed an immediate ban on Russian oil and other energy imports on Tuesday in retaliation to Russia’s invasion of Ukraine.
The rouble tumbled more than 15% in Moscow as it resumed local trading for the first time this week.
The sanctions have not only triggered a rally in commodity prices, but have generated more margin calls at trading firms, sparking fears of a spillover into the broader financial world and raising global inflationary pressures.
Also on AF: Asia-Pacific Nations Grapple With Threats to Food Supply
But the MSCI’s index for emerging market stocks was up 0.5%, for the first time in four days, while its currencies counterpart added 0.2%.
Tokyo’s benchmark Nikkei 225 index closed down 0.30%, or 73.42 points, at 24,717.53, while the broader Topix index inched down 0.06%, or 0.97 points, to 1,758.89.
Hong Kong’s Hang Seng Index lost 0.67%, or 138.16 points, to 20,627.71. The Shanghai Composite Index fell 1.13%, or 37.14 points, to 3,256.39, while the Shenzhen Composite Index on China’s second exchange lost 1.10%, or 23.52 points, to 2,116.15.
Chinese shares had struggled following inflation data that showed a combination of soft domestic demand and high commodity prices, while coronavirus cases there continue to rise.
European stock indexes clawed back some ground in early trading on Wednesday after three days of falls, as crude prices rose after the US’s Russia oil ban.
At 0815 GMT, Brent crude futures were at $128.89 a barrel, up 0.6% on the day. While this was below Monday’s high of $139.13, it was roughly double December’s lows.
Russian Invasion Hit On Global Supply Chains
The Russian invasion and ensuing sanctions have played havoc with global supply chains, sending prices soaring across the commodities market.
Nickel trading remained suspended on the London Metals Exchange after prices doubled in a surge sources attributed to short-covering by a top producer.
Gold edged down from the previous session’s 19-month highs.
Elsewhere, bitcoin led a rally in cryptocurrencies after an apparently prematurely published statement on calls for a “coordinated and comprehensive approach to digital asset policy” briefly appeared on the US Treasury website, calming fears about a sudden tightening of US rules around such assets.
Key figures around 0820 GMT
Brent North Sea crude> UP 1.3% at $129.55 per barrel
West Texas Intermediate> UP 0.9% at $124.75
Tokyo – Nikkei 225> DOWN 0.3% at 24,717.53 (close)
Hong Kong – Hang Seng Index> DOWN 0.7% at 20,627.71 (close)
Shanghai Composite> DOWN 1.1% at 3,256.39 (close)
London – FTSE 100> UP 1.5% at 7,066.96
New York – Dow: DOWN 0.6% at 32,632.64 (Tuesday close)
- Reuters with additional editing by Sean O’Meara
Read more:
Nickel Price Surge Batters Chinese Stocks
China Factory Prices Ease in February, All Eyes on Commodities
