Asian stocks, FX tumble as Russia attacks Ukraine

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Asian currencies and stocks were battered

on Thursday with shares in Singapore and India losing about 3%

as Russian attacks on Ukraine spoiled investors appetite for

risk.

Russian forces fired missiles at several Ukrainian cities

and landed troops on its south coast on Thursday, officials and

media said, after President Vladimir Putin authorized what he

called a special military operation in the east.

The Moscow Exchange said on Thursday morning it had

suspended trading on all markets while the rouble fell to

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a record low.

Singapore shares slumped up to 2.9% for the third

straight session, logging their sharpest drop since May 14,

while Indian shares weakened for a seventh consecutive

session, falling 3% to a two-month low.

Singapore was dragged lower by a 3% slump in its financial

stocks, with Oversea-Chinese Banking Corp extending

losses after reporting a 14% drop in quarterly profit.

Philippines and South Korean shares also

weakened by 2.2% and 2.8% respectively.

“The escalation is likely to send EM inflation higher in

coming months, we think, mainly by pushing up commodity prices.

Higher commodity prices are likely to affect big net importers

such as Thailand and India,” Sid Mathur, head of emerging

markets research for APAC, BNP Paribas

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“For EM currencies, we expect the negative impact on risk

sentiment to outweigh any positive commodity price impact,” he

added.

The conflict in Ukraine helped drive safe-haven bids for the

greenback , while gold prices rose by over 2%.

“Risk-off sentiment overall is rising, and we expect it to

grow further if Russia makes further inroads into Ukraine, led

primarily by the result of higher energy prices. Overall, we

expect markets to remain volatile in the near term,” an OCBC

note said.

The dollar’s strength and rocketing oil prices hurt emerging

market currencies, with the commodity-linked Indian rupee

leading declines, easing 0.8% while the Thai baht

was down 0.5%.

Thailand reported a record number of new COVID-19 infections

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on Thursday, dragging its shares down by up to 1.7%, its

biggest percentage drop since Dec. 20.

South Korea’s won was also down 0.8%, its

sharpest decline since Dec 20, while Philippines peso

fell 0.6%.

South Korean stocks opened steeply lower Thursday, tracking

overnight plunges on Wall Street that stemmed from rising

tensions in Ukraine.

Highlights:

** Indonesian 10-year benchmark yields are up 1.79 basis

points at 6.519%​​

** Top losers on the Singapore STI include: SATS

down 4.78%; Oversea-Chinese Banking Corporation

down 4.7%; United Overseas Bank Ltd down

4.08%

THIS IS THE TABLE (green cells) TO

INCLUDE IN REPORT

Asia stock indexes and

currencies at 0442 GMT

COUNTRY FX RIC FX FX INDE STOCKS STOCKS

DAILY % YTD % X DAILY YTD %

%

Japan +0.34 +0.44 <.n2>

China EC>

India -0.72 -1.02 <.ns ei>

Indonesi -0.31 -0.90 <.jk a se>

Malaysia -0.26 -0.74 <.kl se>

Philippi -0.51 -0.74 <.ps nes i>

S.Korea 11>

Singapor -0.49 -0.29 <.st e i>

Taiwan -0.34 -1.04 <.tw ii>

Thailand -0.49 +2.93 <.se ti>

(Reporting by Savyata Mishra in Bengaluru; Editing by Simon

Cameron-Moore)