Asia Mostly Lower As Russia-Ukraine Tensions Rattles Up, Commodity Names Gain

The positive lead from Wall St. was negated by flows arising from the well-documented escalation in geopolitical tensions surrounding the Russia-Ukraine situation over the weekend. Commodity-linked stocks across Asia saw notable gains on Monday amidst a rise in commodity prices, with the Bloomberg Commodity Index (BCOM) sitting 2.8% better off at typing.

• The Hang Seng leads losses amongst regional peers, printing 1.4% worse off at typing, taking the index to levels not witnessed since Mar ’20. China-based technology companies again underperformed, with steep declines seen in the real estate and financials sub-indices as well.
• The CSI300 sits 0.4% weaker, with gains in sectors seen to potentially benefit from a conflict in Ukraine and international sanctions on Russia (i.e. materials, energy and payments) countered by declines in risk-sensitive consumer discretionary and consumer staples stocks.
• Looking ahead, China’s political elite will meet for the annual “Two Sessions” in Beijing on Mar 4. Participants will likely be on the lookout for the announcement of “pro-growth” policies, mainly to address the government’s previously identified issues of “contraction of demand, supply shocks, and weaker expectations” within the Chinese economy.
• The Australian ASX200 bucked the broader trend of losses in the region to add 0.7%, led by gains in materials and energy stocks.
• U.S. e-mini equity index futures deal 1.7% to 2.6% softer at typing.