EQUITIES
Shares in Asia-Pacific declined in Tuesday trade as tensions surrounding Russia and Ukraine keep investors on edge.
Hong Kong’s Hang Seng index led losses regionally, falling 3.11% in afternoon trade. Hong Kong-listed shares Tencent and Alibaba largely slipped, hit by speculation about a new wave of regulatory scrutiny. Other Hong Kong-listed Chinese tech shares also declined, with Tencent falling 1.98% and Meituan plunging 5.82%. The Hang Seng Tech index slipped 2.84%.
The Shanghai composite in mainland China meanwhile dipped 1.46%.
The Nikkei 225 in Japan also saw sizable losses, last down 1.78% while in South Korea, the KOSPI fell 1.70%. Australia’s S&P/ASX 200 dropped 1.00%.
The U.S. and European markets are also braced for sharp losses at the opening bell later today.
OIL
Oil prices jumped on Tuesday on supply disruption worries as tensions between Russia and Ukraine escalated.
The Brent now traded at $96.80 per barrel, while the U.S. crude futures traded at $92.76 per barrel.
Overnight, the Brent futures ends at $95.39 a barrel, while the WTI crude oil prices closed for holiday.
CURRENCIES
The Russia-Ukraine invasion nerves drove U.S. Treasury yields lower, with benchmark 10-year Treasury yields diving 7.5 bps to 1.856%. Bets on Fed rate hikes also eased and the chance of a 50bps hike next month fell below one-in-five.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.141 following a recent bounce from below 95.8.
The Russian rouble which hit an 18-month low early in the day, before steadying. Russia's MOEX equity index lost 10.5% on Monday.
GOLD
Gold gained ground as investors moved away from risky assets. Spot gold added 0.3% to $1,909.70, having touched $1,913.89 per ounce earlier, its highest since June 1. U.S. gold futures gained 0.6% to $1,911.10.
Spot silver gained 0.9% to $24.14 per ounce, platinum rose 0.9% to $1,083.68 and palladium was up 0.8% to $2,406.24.
ECONOMIC OUTLOOK
Shares tumbled on Tuesday as tensions between Russia and the West grew after Moscow recognised two breakaway regions in eastern Ukraine as independent. Crude oil and safe-havens rallied.
In a lengthy televised address late Monday, Putin described Ukraine as an integral part of Russia's history, with eastern Ukraine made up of ancient Russian lands, and he was confident the Russian people would support his decision. He also recognised two breakaway regions in eastern Ukraine as independent and ordered the Russian army to launch what Moscow called a peacekeeping operation into the area, upping the ante in a crisis that could unleash a major war.
Following the development, the White House responded, with U.S. President Joe Biden issuing executive order prohibiting economic activity between the two regions of Ukraine and U.S. individuals. Britain also vowed to impose sanctions, while Japan reportedly to follow.
U.S. equity markets meanwhile have been under pressure in recent weeks as rising inflation has put the Fed on a path to tightening its monetary policy, likely to begin at its March meeting. Later in the week, personal consumption expenditures data will be released and is likely to cement expectations the central bank will begin raising interest rates next month.
