Asian stocks swing in volatile trade as Ukraine tensions mount

Japan's Nikkei 225 rose 0.48 per cent, recovering from an earlier loss. Australia's benchmark added 0.64 per cent after also being down at one point. Chinese blue chips, though, slipped 0.21 per cent. Credit: Reuters File Photo

Crude oil jumped while the rouble plunged nearly 30 per cent to a fresh record low on Monday after Western nations imposed new sanctions on Russia for its invasion of Ukraine, including blocking some banks from the SWIFT international payments system.

Haven demand boosted bond yields along with the dollar and yen while the euro sank after Russian President Vladimir Putin put nuclear-armed forces on high alert on Sunday, the fourth day of the biggest assault on a European state since World War Two.

Also Read | Putin declares a nuclear alert, and Biden seeks de-escalation

The ramp-up in tensions heightened fears that oil supplies from the world's second-largest producer could be disrupted, sending Brent crude futures up $4.21 or 4.3 per cent at $102.14. US West Texas Intermediate (WTI) crude futures were up $4.58 or 5.0 per cent at $96.17 a barrel.

US and European stock futures sank, but Asia-Pacific stocks were mostly higher in volatile trading, buoyed by Wall Street gains from Friday, when the S&P 500 closed up 2.51 per cent, said Kyle Rodda, a market analyst at IG Australia.

"We had a deluge of very negative information over the weekend," Rodda said. "My sense is there's not going to be much-staying power behind this particular move (in Asia-Pacific stocks), considering we're talking about financial stability risks, and sprinkle over that the threat of nuclear war."

Also Read | Chinese payment stocks jump as SWIFT sanctions against Russia boosts Yuan hopes

"Volatility is heightened," he said. "Price action is incredibly choppy."

US emini stock futures were pointing to a 1.57 per cent drop at the restart, while pan-European EURO STOXX 50 futures lost 2.83 per cent.

Japan's Nikkei 225 rose 0.48 per cent, recovering from an earlier loss. Australia's benchmark added 0.64 per cent after also being down at one point. Chinese blue chips, though, slipped 0.21 per cent.

MSCI's index of regional stocks eked out a 0.09 per cent gain.

Meanwhile, the 10-year US Treasury yield fell about 6 basis point to 1.92 per cent, and equivalent Australian yields also retreated about 6 basis points, to 2.18 per cent.

The euro slid 0.9 per cent to $1.1170 and 0.87 per cent to 129.065 yen, while the risk-sensitive Australian and New Zealand dollars sank 0.66 per cent and 0.76 per cent, respectively.

The rouble tumbled 29.37 per cent to a record-low 119 per dollar.

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