EQUITIES
shares in Asia-Pacific were mixed on Monday as investors monitor the Russia-Ukraine crisis and related sanctions.
Japan’s Nikkei 225 erased losses to add 0.20%, while in South Korea, the KOSPI to rise 0.51%. The S&P/ASX 200 in Australia was up 0.73% after falling slightly.
In mainland China, the Shanghai composite rose 0.14% and in Hong Kong, the Hang Seng index dropped 0.75%. The FTSE Straits Times Index in Singapore fell 1.45%.
Elsewhere, Taiwan markets are closed for a holiday on Monday.
OIL
Oil futures were up more than 5% on Monday, after Russian President Vladimir Putin put the country's nuclear deterrent on high alert in the face of Western nations and Japan stepping up sanctions against Russian banks.
The Brent once again crossed the $100 level, to trade at $102.50 per barrel, while the U.S. crude futures traded at $96.51 per barrel.
Both benchmarks crossed the $100 level last week, before paring gains and settled more than 1% lower on Friday.
CURRENCIES
Dollar soared against most peers after Western nations announced fresh sanctions to punish Russia for its invasion of Ukraine, and President Vladimir Putin put its nuclear forces on high alert. The dollar index, which measures the currency against six peers, was up 0.74% at 97.259.
The Russian rouble plunged to a record low against the dollar on Monday, after Western nations announced a harsh set of sanctions over the weekend, including curbs on the country's currency reserves and blocking some banks from the SWIFT international payments system. The rouble fell as far as 119 per dollar, a steep drop of 30% from Friday's close. It subsequently recovered to trade around 110 per dollar.
In cryptocurrency markets, bitcoin was in the middle of its recent range, trading just below $38,000, while ether tumbled as much as 9.4%, briefly took it below $2,600.
GOLD
Spot gold, traditionally a safe haven in times of uncertainty, last traded at $1,907.70, rising 1%. U.S. gold futures jumped 0.30% to $1,912.00.
The crisis in Ukraine has bolstered gold as investors seek safe havens. The latest Western sanctions prompted a pledge from Russia’s central bank to resume purchases of the precious metal that have been on pause for nearly two years.
Silver and platinum each rose more than 1% on Monday, while palladium climbed as much as 7% on concerns over potential supply disruptions. Russia produces about 40% of the palladium mined globally. Aluminium rose to a fresh record.
ECONOMIC OUTLOOK
Equity markets were mixed on Monday as investors track developments in the Russia-Ukraine crisis.
Russia continued its advance into Ukraine over the weekend, with reports of fighting on the streets and forces encircling Kyiv. Russian President Vladimir Putin also reportedly put his country’s deterrence forces, which include nuclear capabilities, on high alert in response to aggressive statements by NATO leaders and the range of economic sanctions imposed by the West.
The U.S. and its allies announced new sanctions and measures to hit Russia, such as removing selected Russian banks from the SWIFT interbank messaging system, and to target the Russian Central Bank’s international reserves. Many countries have also said they will close their airspace to Russian aircraft.
On the diplomatic front, representatives from the Ukraine and Russian governments have agreed to meet at the Ukraine-Belarus border with “no preconditions,” according to Ukraine’s Defense Ministry. Belarus, which shares a border with both Ukraine and Russia, has close ties with Moscow.
