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Asian markets rose after Russia sanctions pushed US stocks to correct

Asia-Pacific stocks edged higher on Wednesday, recovering slightly from a sell-off fueled by fears of a potential conflict in Ukraine that pushed the S&P 500 index into correction territory.

Hong Kong’s Hang Seng index rose 0.6% on Wednesday, while China’s CSI 300 index of Shanghai- and Shenzhen-listed stocks gained 1%. Markets in Japan were closed for a holiday.

Rise for Asian stocks comes after S&P 500 close Less than 1% on Tuesday, sending the US stock benchmark down more than 10% from its most recent peak after Russian President Vladimir Putin directing his army entered the rebel-held Donetsk and Luhansk regions of Ukraine.

That move was followed by a series of sanctions from Western nations, with the US announcing measures targeting two of Russia’s largest financial institutions as President Joe Biden accused Putin of starting an “invasion” of Ukraine and warned that Washington had Prepare for further action.

“Put simply, Russia has just announced that it is carving out a large portion of Ukraine’s territory,” Biden said. “He is making excuses to take more territory by force. . . He is establishing the rationale for going further. This is the beginning of a Russian invasion of Ukraine.”

But analysts say the market’s reaction to announcements from Biden and other Western leaders was overpowered.

“There has been a rather muted market reaction to the US and European announcements of sanctions on Russia,” said Robert Carnell, head of strategy for Asia at ING. Carnell noted that US stocks had suffered losses but added that the drop “was small compared to some of the recent moves.”

Oil prices are also stable after wild ferris wheel On Tuesday, the price of Brent crude, the international benchmark, hit a high of $99.50 a barrel as traders grapple with the possibility of supply disruptions from Russia.

On Wednesday, Brent crude traded flat at $96.80, sending international oil prices up nearly 4% over the past three days and posting their biggest weekly gain since early January.

Futures showed US stocks rebounded slightly as trading started on Wall Street, with the S&P 500 index set to gain 0.5%. Euro Stoxx 50 futures also sent European shares up about 0.5%.

In currency terms, the New Zealand dollar rose 0.7% to a five-week high of $0.6777 against its US counterpart after the country’s central bank raised interest rates 0.25 percentage points. hundred and signal more tightening is underway.

Unhedged – Markets, Finance and Strong Perspectives

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