Asian Markets Decline Amid Escalation in Ukraine Conflict and Sanctions on Russia

Asian stock markets mostly declined on Wednesday, tracking overnight losses on Wall Street as concerns mounted over the economic impact of the escalating Russia-Ukraine war and stringent Western sanctions. Energy prices jumped amid fears of accelerating inflation.

Russian forces intensified attacks on key Ukrainian cities including Kyiv, Kharkiv and Mariupol, with reports of rockets hitting the center of Kharkiv and tanks advancing toward the capital. While the first round of peace talks ended without resolution, Ukrainian President Volodymyr Zelensky confirmed a second round of negotiations is forthcoming.

Russia’s economic isolation deepened as Danish shipping giant Maersk announced it would halt container services to and from Russia. Major energy companies BP and Shell have also confirmed plans to exit Russian operations and joint ventures.

Australia’s S&P/ASX 200 edged up 0.30% to 7,117.50, extending gains from the previous three sessions. The All Ordainces Index rose 0.28% to 7,406.10. Miners Rio Tinto, OZ Minerals and Fortescue Metals gained nearly 4% each, while BHP Group and Mineral Resources also advanced. Oil stocks showed strength across the board, with Woodside Petroleum up 3.5% and Origin Energy gained 1%. However, technology shares slipped, with Xero down more than 1% and Zip and Appen falling over 4% each.

Japan’s Nikkei index dropped 1.87% to 26,341.95, surrendering recent gains. SoftBank Group fell nearly 1%, while Tokyo Electron and Advantest declined over 2%. Among exporters, Sony and Panasonic dropped more than 1%, while automakers Honda and Toyota slipped over 3% following leadership changes at Toyota.

Hong Kong stocks rose 1.0%, while New Zealand, China, Singapore and Taiwan gained between 0.3-0.6%. Malaysia and Indonesia also advanced 0.3% each, though South Korea remained largely flat.

On Wall Street, the Dow plunged 1.65% to 33,294.95, the S&P 500 fell 1.55% to 4,306.26, and the Nasdaq declined 1.59% to 13,693.34. European markets also retreated, with the FTSE 100 down 1.72%, Germany’s DAX falling 3.85%, and France’s CAC 40 dropping 3.94%.

Crude oil prices surged 8% to $103.41 a barrel, the highest settlement since July 2014, as supply concerns intensified amid the conflict.

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