Title: Asian Stocks Down as West Seeks to Ban Russian Crude Supplies
Mar 06, 2022 09:47PM ET
Asia-Pacific stocks declined on Monday morning along with US stock futures. The conflict in Ukraine may last longer than expected after Russian President Vladimir Putin warned that the war in Ukraine would continue. Investors are also worried about an inflationary shock to the global economy and oil has risen sharply because of a possible ban on Russian oil supplies.
China's Shanghai Composite was down 1 percent by 9:38 pm ET, while Shenzhen Component was down 1.92 percent. February trade data, including exports, imports, and trade balance, are due out later in the day. Other data, including consumer price and producer price indices, are due out on Wednesday.
On Saturday, China also set its GDP target for 2022 at an ambitious level of "around 5.5%". Premier Li Keqiang vowed at the opening of the National People's Congress to take decisive measures to protect the economy amid rising risks. Foreign Minister Wang Yi will brief the NPC on Monday.
Hong Kong's Hang Seng index fell 3.31%.
Japan's Nikkei 225 fell 3.29% and South Korea's KOSPI fell 2.35%. In Australia, the ASX 200 index fell 1.31%.
The West is exploring a coordinated embargo on Russia following its invasion of Ukraine, while ensuring adequate global supplies, US Secretary of State Anthony Blinken said on Sunday.
In response, Putin signed a decree allowing the government and companies to pay foreign creditors in rubles, and the Finance Ministry warned that sanctions would determine whether international investors could receive payments. A growing number of companies are also beginning to wind down their operations in Russia, including Netflix Inc. and TikTok.