US futures fall 2.5%
Stocks in US, EU markets nosedive; Asian shares mixed; Western sanctions on Russia hit Ruble, stocks; Ruble quoted a record low at 105.27/USD on Monday; Brent crude gained $4.31 to $98.33/bbl
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Tokyo: Shares were mixed in Asia, but USA and European futures were sharply lower as President Vladimir Putin escalated tensions by ordering that Russian nuclear forces be put on high alert. US futures fell, with the contract for the S&P 500 down 2.5 per cent and that for the Dow industrials 1.6 per cent lower.
The future for Germany's DAX dropped 3.2 per cent and the future for the FTSE 100 lost 1.3 per cent. Markets in Asia appeared to take the latest developments more calmly. Japan's Nikkei 225 index recovered from earlier losses to edge 0.1 per cent higher at 26,514.79. The Hang Seng in Hong Kong lost 0.8 per cent to 22,584.17. The Shanghai Composite index was 0.1 per cent lower at 3,449.52. The Kospi in Seoul climbed 0.6 per cent to 2,690.28, while in Sydney the S&P/ASX 200 gained 0.7 per cent to 7,049.10.
Although Asia is unlikely to suffer direct damage from the war in Ukraine, higher energy prices are an unwelcome burden for oil-importing nations like Japan, especially while they are still struggling to recover from the pandemic. Underscoring deepening rifts due to the conflict, BP said Sunday it was exiting its 19.75 per cent share in Rosneft, a state-controlled Russian oil and gas company, which it has held since 2013. That stake is currently valued at $14 billion.
The Ruble plunged to a record low of less than 1 US cent on Monday after Western nations moved to tighten sanctions against Russia, blocking some of its banks from the SWIFT global payments system.
Russian's invasion of Ukraine has caused markets to swing wildly, given the potential impact on inflation, energy supplies and other economic repercussions. Putin ordered Russian nuclear weapons prepared for increased readiness to launch on Sunday, ratcheting up tensions with Europe and the United States in a move that revived dormant fears from the Cold War era.
Japan over the weekend joined moves by the US and other Western nations to impose sanctions against Russia, including restrictions on access for some Russian banks to the SWIFT system.
