Asian stock markets rebounded Wednesday after Wall Street slid on anxiety over President Vladimir Putin’s authorization to send Russian soldiers into eastern Ukraine.
Shanghai, Hong Kong, South Korea and Australia advanced. Oil prices edged higher on concern about possible disruption to Russian supplies. Japanese markets were closed for a holiday.
Global stock prices sank Tuesday as traders tried to figure out the impact of Russia’s moves and sanctions imposed by Washington, Britain and the 27-nation European Union on its banks, officials and business leaders. “Current US sanctions on Russia are less-than-feared by the market,” said Anderson Alves of ActiveTrades in a report.
Alves noted American officials have more “acute options” including reducing Russia’s access to the SWIFT system for global bank transactions.
Wall Street’s benchmark S&P 500 index lost 1 per cent on Tuesday. That puts it 10.3 per cent below its Jan. 3 all-time high and into a correction, or a decline of at least 10 per cent but less than 20 per cent.
On Wednesday, the Shanghai Composite Index rose 0.6 per cent to 3,476.15 and the Hang Seng in Hong Kong gained 0.7 per cent to 23,682.90. The Kospi in Seoul advanced 0.5 per cent to 2,720.20 and Sydney’s S&P-ASX 200 added 0.5 per cent to 7,196.40.
New Zealand rose after the central bank raised its benchmark interest rate by one-quarter point to 1 per cent to cool inflation. The Reserve Bank of New Zealand said its benchmark rate would be raised to more than 3 per cent by next year.
India’s Sensex opened up 0.2 per cent at 57,425.96. Indonesia gained while Singapore and Bangkok declined.
On Wall Street, the S&P 500 fell to 4,304.76. The Dow Jones Industrial Average lost 1.4 per cent to 33,596.61. The Nasdaq composite lost 1.2 per cent to 13,381.52.
On Wall Street, the S&P 500 fell to 4,304.76. The Dow Jones Industrial Average lost 1.4 per cent to 33,596.61. The Nasdaq composite lost 1.2 per cent to 13,381.52. (AP)
US stocks were already off their early January 3 peak due to uncertainty about the impact of the Federal Reserve’s decision to withdraw ultra-low interest rates and other economic stimulus.
Markets were rattled after Putin recognized the independence of rebel-held areas in Ukraine and sent in troops in defiance of US and European pressure.
Wheat prices rose on concern about supplies from Russia and Ukraine being disrupted.
Prices of nickel and aluminum, for which Russia is a major supplier, also rose.
European gas prices jumped after Germany withdraw a key document needed for certification of the Nord Stream 2 gas pipeline from Russia.
In energy markets, benchmark US crude rose 28 cents to $92.19 in electronic trading on the New York Mercantile Exchange. The contract rose $1.28 on Tuesday to $92.35. Brent crude, the price basis for international oils, advanced 22 cents to $94.07 per barrel in London. It gained $1.45 the previous session to $96.84.
The dollar edged down to 115.05 yen from Tuesday’s 115.07 yen. The euro declined to $1.1327 from $1.1334.
,