Asian Equities Gained Despite Heightened Uncertainty Over West Isolating Russia

Asian equities gained despite high uncertainty after  after Western nations escalated sanctions on Russia for the invasion of Ukraine.

The CSI300, KOSPI, SET and TOPIX closed higher by 0.18%, 0.84%, 0.31%  and 0.57% respectively, while HSI closed inching down marginally by 0.24%.

U.S. futures Dow Jones, S&P500 and Nasdaq 100 shedding loss by 1.42%, 1.65% and 1.51% respectively.

The dollar rallied along with it close peers while Russian Rubble at record low with policymakers ordering exporting companies to sell off dollar to minimize impact on the Rubble.

Earlier the U.S. and its allies on Saturday vowed to remove major Russian banks from the SWIFT interbank messaging network, effectively cutting them off from the global financial network. Some experts speculated about runs on Russian banks as the value of the ruble sinks against the U.S. dollar.

Russian central in response raised key interest rate to 20% from 9.5% as well as mandated sale of foreign curries.

A key question is how all this may affect the Federal Reserve’s plan for a series of interest-rate hikes starting in March. Markets now see smaller chances of an aggressive Fed liftoff, and anticipate just under six hikes in 2022.

“We’re just a few days into a kind of once-in-a-lifetime reorientation in the global order,” Homin Lee, Asia macro strategist as Lombard Odier, said on Bloomberg Television. “This transition is not going to be a smooth one” and uncertainties will remain very high in the next few weeks, he said.

Energy prices are on the rise with WTI trading at $96.29 per barrel up by 5.14% while Brent on the higher edge trading at $102.90 up by 5.08%.