Asian stocks rebound after Wall St falls on Ukraine tensions


BEIJING, Feb. 23 (BNA): Asian stock markets rebounded on Wednesday after Wall Street slid amid concerns over President Vladimir Putin’s statement to send Russian soldiers to eastern Ukraine.


Shanghai, Hong Kong, South Korea and Australia advanced. Oil prices rose on fears of a possible disruption to Russian supplies. The Associated Press reported that Japanese markets were closed for a holiday.


Global stock prices sank on Tuesday as traders tried to see the impact of Russia’s moves and sanctions imposed by Washington, Britain and the 27-nation European Union on banks, officials and business leaders.


“The current US sanctions on Russia are less than the market fears,” Anderson Alves of ActivTrades said in a report. Alves noted that US officials have “sharper options” including limiting Russia’s access to the SWIFT system for global banking transactions.


Wall Street’s benchmark S&P 500 index lost 1% on Tuesday. This puts it below its Jan 3 high of 10.3% and in correction, or a drop of at least 10% but less than 20%.


On Wednesday, the Shanghai Composite rose 0.6% to 3476.15, and Hong Kong’s Hang Seng rose 0.7% to 23682.90.


Seoul’s Kospi advanced 0.5% to 2720.20 and Sydney’s S&P-ASX 200 rose 0.5% to 7,196.40.


New Zealand’s rate rose after the central bank raised its benchmark interest rate by a quarter point to 1% to cool inflation. The Reserve Bank of New Zealand said the benchmark interest rate will rise to more than 3% by next year.

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India’s Sensex Index opened 0.2% higher at 57425.96. Indonesia rose while Singapore and Bangkok fell.


On Wall Street, the S&P 500 fell to 4304.76. The Dow Jones Industrial Average lost 1.4% to 33596.61. The Nasdaq Composite lost 1.2% to 13381.52.


US stocks were already far from their peak as early as January 3 due to uncertainty over the impact of the Federal Reserve’s decision to withdraw ultra-low interest rates and other economic stimulus.


Markets shook after Putin recognized the independence of rebel-held regions of Ukraine and sent troops in defiance of US and European pressure.


Wheat prices rose on fears of supply disruptions from Russia and Ukraine.


The prices of nickel and aluminum, of which Russia is a major supplier, rose.


European gas prices jumped after Germany withdrew a key document required for certification of the Nord Stream 2 gas pipeline from Russia.


In energy markets, the price of 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 global oils, rose 22 cents to $94.07 a barrel in London. It gained $1.45 in the previous session to $96.84.


The dollar fell to 115.05 yen from 115.07 yen on Tuesday. The euro fell to $1.1327 from $1.1334.









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