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Bloomberg
Asian stocks tumbled to their lowest since November 2020 as signs Russia’s attack on Ukraine is intensifying further roiled financial markets.
The MSCI Asia Pacific Index fell as much as 1.8%, as Ukrainian officials said Russian forces have occupied the site of Europe’s largest nuclear power plant after an attack that caused fire. The gauge is now down 19% from a February 2021 peak, inching closer to bear market territory.
Ukraine told the International Atomic Energy Agency the fire “has not affected ‘essential’ equipment,†and that there had been no change reported in radiation levels. While stocks fell, haven assets such as sovereign bonds advanced.
“Markets remain at the mercy of unpredictable Russia/Ukraine headlines, and this latest news regarding the Zaporizhzhia nuclear plant has caused an instant reaction,†said Andrew Ticehurst, a rates strategist at Nomura Holdings Inc in Sydney. Japan’s Nikkei 225 Index and Hong Kong’s Hang Seng Index fell the most in the region as investors sought to assess the impact of the escalating conflict.
Even the region’s energy shares that had been supported so far by a surge in oil prices slid, underscoring the extent of market jitters. The MSCI Asia Pacific Energy Index fell 0.7% as of 16:50 p.m. in Hong Kong, snapping a five-day run of advances.
With Friday’s losses, the MSCI Asia Pacific Index is on track for a third week of declines, longest since a similar losing streak ended early December. China’s benchmark CSI 300 Index fell 1.2% ahead of the nation’s top political meeting. Investors are waiting for potential policy signals before the nation’s battered property and tech sectors.
In Hong Kong, tech shares took a plunge, in part tracking overnight moves of its peers listed in the US. The Hang Seng Tech Index fell 4.4% to the lowest since its inception in mid-2020.