Hong Kong and Japan drop more than 2% as Asia stocks slide; investors monitor Ukraine-Russia developments

13:29 04 March in Latest News

Shares in Asia-Pacific slipped on Friday as investors remained on edge over Russia’s invasion of Ukraine.

Hong Kong’s Hang Seng index led losses regionally as it fell 2.5% to close at 21,905.29, with shares of HSBC slipping 3.38%. In mainland China, the Shanghai composite shed 0.96% to finish its trading day at 3,447.65 while the Shenzhen component dipped 1.374% to 13,020.46.

The Nikkei 225 in Japan fell 2.23% to close at 25,985.47, with shares of conglomerate SoftBank Group dropping 4.78%, while the Topix index shed 1.96% to 1,844.94.

South Korea’s Kospi dipped 1.22% on the day to 2,713.43. Over in Australia, the S&P/ASX 200 shed 0.57%, closing at 7,110.80.

MSCI’s broadest index of Asia-Pacific shares outside Japan declined 1.48%.

The major indexes in Asia-Pacific initially extended losses Friday after reports that smoke was visible from a nuclear power plant in Ukraine — the largest in Europe — after Russian troops attacked it.

Some of those losses were later pared after the nuclear power plant’s director said the facility’s nuclear security is secured at the moment. Ukrainian authorities posted a subsequent update that the fire had been put out.

The situation in Ukraine is rapidly deteriorating, and reports from the country are difficult to confirm.

“Risk sentiment remains fragile and is very much being swung around by Russia/Ukraine headlines as well by central banks who seem committed to hiking rates, and who are also noting upside risks to inflation,” Tapas Strickland, an economist at National Australia Bank, wrote in a note.

Oil moves

Investors also continued to monitor oil prices, which have surged in recent days. In the afternoon of Asia trading hours on Friday, international benchmark Brent crude futures gained 1.58% to $112.21 per barrel. U.S. crude futures also advanced 2.13% to $109.96 per barrel.

Oil prices saw a pullback on Thursday after days of rising rapidly, with U.S. crude futures at one point surging to a level last seen in Sept. 2008. International benchmark Brent crude futures currently sit at $110.4 per barrel after recently rising to as high as $119.84, the highest level since May 2012.

Overnight stateside, The Dow Jones Industrial Average shed 96.69 points to 33,794.66 while the S&P 500 dipped about 0.53% to 4,363.49. The Nasdaq Composite dropped 1.56% to 13,537.94.


The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.057 after recently rising from below 97.5.

The Japanese yen traded at 115.50 per dollar, weaker than levels below 115 seen against the greenback earlier in the week. The Australian dollar changed hands at $0.7352 following its general rise from levels below $0.721 earlier this week.

.N225 Nikkei 225 Index *NIKKEI 25985.47 -591.8 -2.23
.HSI Hang Seng Index *HSI 21905.29 -562.05 -2.5
.AXJO S&P/ASX 200 *ASX 200 7110.8 -40.6 -0.57
.SSEC Shanghai *SHANGHAI 3447.65 -33.46 -0.96
.KS11 KOSPI Index *KOSPI 2713.43 -33.65 -1.22
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 9108.61 -204.13 -2.19



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