Asian Shares Plunge As Russia Declares War On Ukraine

Asian markets nosedived on Thursday as Russia declared war against Ukraine, claiming the invasion is intended to protect civilians.

Investors sought shelter in safe-haven assets after Russia launched a military operation in Ukraine in what could be the start of war in Europe over Russia’s demands for an end to NATO’s eastward expansion.

The world will hold Russia accountable for the death and destruction due to the “unprovoked” and “unjustified” attack on Ukraine and the U.S. and its allies will respond in a “united and decisive” way, U.S. President Joe Biden has warned.

China’s Shanghai Composite Index dropped 59.19 points, or 1.7 percent, to 3,429.96, tracking a sell-off across global equities. Hong Kong’s Hang Seng Index plummeted 758.72 points, or 3.2 percent, to close at 22,901.56.

Japanese shares hit a 15-month low as Russia finally invaded Ukraine, firing missiles at several Ukrainian cities and landing troops on Ukraine’s south coast, according to media reports.

The Nikkei 225 Index tumbled 478.79 points, or 1.8 percent, to 25,970.82, its lowest close since November 20, 2020. The broader Topix closed 1.3 percent lower at 1,857.58, notching a fifth straight session of decline.

Heavyweights led losses, with Fast Retailing, Fanuc and SoftBank Group losing 4-7 percent. Daiichi Sankyo finished marginally higher after announcing its Enhertu cancer drug topped chemotherapy at prolonging patients’ lives.

Australian markets fell the most in nearly one-and-a-half years, as heightened geopolitical tensions coupled with fears about possible aggressive tightening by the Federal Reserve to combat inflation dented investors’ appetite for riskier assets.

The benchmark S&P/ASX 200 Index plunged 215.10 points, or 3 percent, to 6,990.60 – marking its worst session since September 4, 2020. The broader All Ordinaries Index lost 220.80 points, or 3 percent, to finish at 7,253.10. Selling was seen across the board, with banks, miners and technology stocks leading the losses.

Gold miners outperformed as bullion prices jumped to their highest in more than a year. Newcrest Mining surged 4 percent and Northern Star Resources soared 5.9 percent.

Seoul stocks lost ground as investor sentiment worsened over Russia’s launch of military operations in Ukraine. The Kospi dove 70.73 points, or 2.6 percent, to close at 2,648.80.

Market bellwether Samsung Electronics dropped over 2 percent, No. 2 chipmaker SK Hynix gave up 4.7 percent, top carmaker Hyundai Motor declined 4.2 percent and leading chemical firm LG Chem plunged 6.8 percent.

Earlier in the day, the Bank of Korea maintained its base rate at 1.25 percent, citing fallouts from the pandemic and the Ukraine crisis.

New Zealand stocks followed world markets lower, with the benchmark NZX-50 Index tumbling 401.87 points, or 3.3 percent, to 11,732.55, marking the worst day for the index since March 23, 2020 and the lowest close since September 2020.

U.S. stocks slumped overnight as the potential for war in Ukraine added to uncertainty over the pace of Fed tightening.

The S&P 500 shed 1.8 percent and the tech-heavy Nasdaq Composite Index plunged 2.6 percent to reach their lowest closing levels in eight and nine months, respectively, while the Dow dropped 1.4 percent to hit a nearly eleven-month closing low.

Market Analysis