Most Asian markets tumble on red-hot Ukraine tensions

Most Asian markets tumble on red-hot Ukraine tensions

AFP / Hong Kong

Asian markets plunged while oil and haven assets rallied yesterday after Russia’s Vladimir Putin ordered troops into two separatist regions in eastern Ukraine, ramping up geopolitical tensions and fears of a conflict.

Investors were sent running after Putin recognised the independence of two rebel-held areas of Donetsk and Lugansk and sent in “peacekeeping” forces.

The move came hours after the Kremlin appeared to pour cold water on a potential summit with US President Joe Biden and led to condemnation from world leaders and warnings Moscow would be hit with a series of sanctions.

Biden, France’s Emmanuel Macron and German Chancellor Olaf Scholz warned that Moscow’s gambit “would not go unanswered”. The White House said Biden would issue an executive order to “prohibit new investment, trade, and financing by US persons to, from, or in” the two rebel regions.

A French presidential official said the European Union was preparing a list of Russian entities and individuals to sanction in a “proportionate” response to the recognition.

The prospect of war and strict sanctions sparked concerns about the impact on supplies of a range of commodities from the region, including oil, wheat and nickel.

Crude — already up more than 25% this year