Asian shares mixed amid Ukraine, sanctions, energy worries

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Although the Asian region is unlikely to suffer direct damage from the war in Ukraine, higher energy prices are likely to prove devastating, especially for oil-importing nations like Japan.

Japan has joined the West in slapping sanctions on Russia, joining the international effort to block some Russian banks from the global SWIFT payment system. Prime Minister Fumio Kishida has also said Japan plans to freeze Putin’s assets.

As ties between Russia and Europe worsens, it brings into question whether Russia's trade relationship with China will strengthen, said Yeap Jun Rong, market strategist at IG in Singapore.

Russian forces have encountered strong resistance from Ukraine defenders, and US officials believe the invasion has been more difficult than the Kremlin envisioned.

On Wall Street, the S&P 500 ended last week by climbing 2.2 percent and notching its first weekly gain in three weeks, adding 95.95 points to 4,384.65. The Dow Jones Industrial Average rose 834.92 points, or 2.5 percent, to 34,058.75. The Nasdaq composite gained 221.04 points, or 1.6 percent, to 13,694.62 after swinging between modest gains and losses. The Russell 2000 index rose 44.92 points, or 2.3 percent, to 2,040.923.

Uncertainty about interest rates and inflation is adding to the worries to the economies, already hit for two years by the coronavirus pandemic and its curbs on travel, trade and economic activity.

Also adding to worries is how the US Federal Reserve has suggested it will raise short-term interest rates next month by double its usual increase, the first rate increase since 2018. Higher US rates tend to put downward pressure on all kinds of investments, and can have global repercussions.

In energy trading, benchmark U.S. crude gained $4.39 to $95.98 a barrel. It slipped 1.3 percent to $91.59 per barrel Friday. Oil prices have briefly topped $100 per barrel lately amid worries that the conflict and upcoming sanctions could disrupt supplies. Brent crude, the international standard, jumped $4.24 to $102.17 a barrel.

In currency trading, the U.S. dollar inched down to 115.55 Japanese yen from 115.56 yen. The euro cost $1.1173, down from $1.1271.