Equites fell sharply on Thursday after Kremlin said separatists in eastern Ukraine asked President Vladimir Putin for help, a step that could lead to Russian troop deployments.
Leader from the two self-declared republics sought help to defend them from Ukrainian forces. However, Putin said he doesn’t yet intend to send what he called “peacekeepers” to eastern Ukraine, but would do so “as necessary.” He also added he rejected U.S. warnings that it plans to invade Ukraine.
Putin said he remains open to “diplomatic solutions” but insists Russia’s interests and security must be guaranteed.
The CSI300, HIS, TOPIX and KOSPI is trading down by 0.44%, 1.52, 0.71% and 1.73% respectively. The MSCI Asian Broad Market Index ex Japan inched up by 0.26%.
Treasuries advanced as demand for bonds has been tempered by worries that commodity flows will be disrupted by the Ukraine crisis, stoking already high inflation and forcing central banks to step up monetary tightening.
Oil pushed higher as traders weighed possible risks to Russian energy exports against the potential release of some strategic reserves to protect prices. The WTI is up by 1.42 % at $93.46 per barrel while the Brent is marginally up by 1.30% to $98.10 per barrel.
“Expect volatility to really persist in the next few months,” Lale Akoner, senior market strategist at BNY Mellon Investment Management, said on Bloomberg Television. She added geopolitical risks are flaring at a “very inopportune time” since markets are grappling with receding stimulus support.
