Asian equity markets suffered large losses on Friday while crude oil inched up after reports on fire at an nuclear power plant dimmed to be the biggest in Europe.
Risk appetite for broad based asset class lowered, sharply lowering U.S. futures suggesting a sharp decline in the opening later in the day.
Investors are extremely anxious as Asian bourses took heavy hit since morning.
“Markets are worried about nuclear fallout. The risk is that there is a miscalculation or overreaction and the war prolongs,” said Vasu Menon, executive director of investment strategy at OCBC Bank, as reported by Reuters.
MSCI’s broadest index of Asia-Pacific shares ex-Japan tumbled as much as 1.6% to 585.5, the lowest level since November 2020.
“Markets don’t want a contagion effect and more European countries impacted by the crisis,” said Menon.
“If investors are looking to buy, they need to have a strong and long-term risk appetite.”
Federal Reserve Chair Jerome Powell on Thursday repeated his comments from Wednesday that he would back an initial quarter percentage point increase in the bank’s benchmark rate.
