Asian stocks fell on Friday after a retreat on Wall Street as escalating worries over the possibility Russia might invade Ukraine rattled global financial markets.
Benchmarks were moderately lower in Tokyo, Sydney and Hong Kong, but rose in Shanghai.
The wave of selling on US markets came as US President Joe Biden warned that Russia, which is believed to have built up about 150,000 troops near Ukraine’s borders, could invade within days.
Dignitaries raced for solutions, but suspicions between East and West only seemed to grow, as NATO allies rejected Russian assertions it was pulling back troops from exercises that had fueled fears of an attack.
The Ukraine crisis has hung over markets for weeks, adding to volatility in markets.
Russia is a major energy producer and if it invades Ukraine, and other governments respond with economic sanctions, that could impede access to about 7 percent of the global energy market, Globalt Investments senior portfolio manager Tom Martin said.
“Without any clear resolution in the near term, the uncertainty for a potential invasion is sufficient to keep market participants shunning from risk assets, while flocking to safe havens,” IG’s Yeap Jun Rong said in a commentary.
The TAIEX on Friday fell 0.2 percent to 18,232.35, down 0.43 percent for the week.
Japan on Friday reported that its core inflation rate, excluding volatile energy and food costs, rose 0.2 percent last month, way below the decades-high figures seen in most major economies and far short of the Bank of Japan’s 2 percent target.
Tokyo’s Nikkei 225 lost 0.4 percent to 27,122.07, but rose 0.16 percent for the week. The broader TOPIX fell 0.36 percent to 1,924.31, taking its weekly decline to 1.95 percent.
The KOSPI in Seoul on Friday added 0.4 percent to 2,744.52, but slipped 0.1 percent weekly.
Australia’s S&P/ASX 200 on Friday declined 1 percent to 7,221.70, but eked out a 0.1 percent weekly gain.
The Shanghai Composite index rose 0.3% to 3,478.46.
Hong Kong shares ended lower on Friday dragged by technology shares, after China’s regulators proposed measures that would require online food delivery platforms to reduce fees for restaurants, while other developments on the mainland helped prop up property firms.
At the close of trade, the Hang Seng Index was down 465.06 points, or 1.88 percent, at 24,327.71 points.
The Hang Seng China Enterprises Index fell 1.99 percent to 8,537.97 points.
For the week, the Hang Seng Index lost 0.47 percent, falling the most in three weeks.
Leading the losses, the IT sector dipped 4.48 percent, with China’s food-delivery giant Meituan (美團) slumping 14.86 percent as the biggest loser on the Hang Seng.
The Chinese National Development and Reform Commission said it would guide online food delivery platforms to lower operating costs for catering businesses by reducing service fees, or commissions.
China’s banking and insurance regulator also warned against using the metaverse as a tool for illegal fundraising, amid widespread interest in the country’s private sector.
Kuaishou Technology (快手), which fell 4.86 percent, led the plunge in Hong Kong-listed metaverse-related stocks.
The state planner said that it would also take steps to ensure supply and stabilize prices of key raw materials, including iron ore and fertilizer, as it looks to promote steady growth in industry.
Property shares gained, with the sector rising 1.48 percent. A handful of Chinese cities started to relax down payment rules for home purchases in a bid to reignite buyer interest.
Among other developments, China’s top finance minister vowed more fiscal support ahead of the Chinese Communist Party congress and China Orient Asset Management Corp secured approval to issue bonds to resolve risks in the property sector.
Additional reporting by staff writer
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