Asian markets swing as traders track events in Russia

Asian markets swing as traders track events in Russia

While a full-blown crisis was averted, analysts said the aborted uprising by Wagner mercenaries showed President Vladimir Putin's grip on power was more fragile than thought
While a full-blown crisis was averted, analysts said the aborted uprising by Wagner mercenaries showed President Vladimir Putin's grip on power was more fragile than thought. Photo: STRINGER / AFP
Source: AFP

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

Asian markets fluctuated Monday as traders kept an eye on Russia following an aborted mutiny at the weekend that stoked concerns about stability in the nuclear-armed country.

While the advance by the Wagner mercenary force led by Yevgeny Prigozhin was called off before it reached Moscow, analysts said the rebellion showed President Vladimir Putin's grip on power was more fragile than previously thought.

It also added to unease on trading floors, where investors last week reversed a recent rally in stocks owing to concerns about ever-rising interest rates aimed at fighting stubborn inflation.

Traders on Monday appeared to take the events in stride, with Hong Kong, Tokyo, Sydney, Seoul, Taipei, Manila, Jakarta and Wellington moving in and out of positive territory in the morning.

And oil prices saw only small gains.

The revolt came after Prigozhin had railed for months against the Russian military's handling of the war in Ukraine.

Read also

Asian markets fall again as traders eye more rate hikes

But Wagner mercenaries returned to their base Sunday after Putin agreed to allow Prigozhin to avoid treason charges and accept exile in neighbouring Belarus.

However, US Secretary of State Antony Blinken said the events exposed "real cracks" in Putin's rule.

The agreement halted an escalation of the crisis but observers warned that markets were susceptible to any further instability in Russia.

"Even though the Prigozhin mutiny may not cause larger market movements directly, this could quickly change depending on how the political situation in Russia unfolds in coming months," Erik Meyersson, at SEB AB, said.

"Markets will likely become more sensitive to internal political matters in Russia."

Investors were also keeping tabs on comments from Federal Reserve officials, hoping for clarity on their monetary policy plans after boss Jerome Powell last week warned rates would likely keep rising.

Read also

Bank of England to hike again over stubborn inflation

His comments dealt a blow to hopes the bank had come to the end of its tightening cycle, and came as authorities elsewhere announced further hikes.

On Friday, Atlanta Fed chief Raphael Bostic said he would be "comfortable" holding borrowing costs where they are for the rest of the year, though San Francisco president Mary Daly warned two more quarter point hikes are a "very reasonable projection".

Both, however, said decisions would be data-dependent.

There is a growing worry among investors that the tightening cycle around the world could hammer the global economy, with the eurozone already tipping into technical recession at the start of the year.

There is also a focus on China and leaders' support plans for the world's number two economy as its recovery from years of zero-Covid restrictions falters.

Traders were left disappointed last week by a lack of detail on how to kickstart growth, with a market rally sparked by interest rate cuts running out of steam.

Read also

Asian markets track US losses with rates seen rising further

Key figures around 0230 GMT

Tokyo - Nikkei 225: UP 0.2 percent at 32,846.24 (break)

Hong Kong - Hang Seng Index: DOWN 0.5 percent at 18,801.70

Shanghai - Composite: DOWN 1.4 percent at 3,153.01

Euro/dollar: UP at $1.0907 from $1.0896 on Friday

Pound/dollar: UP at $1.2737 from $1.2717

Dollar/yen: DOWN at 143.45 from 143.74 yen

Euro/pound: DOWN at 85.64 pence from 85.66 pence

West Texas Intermediate: UP 0.4 percent at $69.43 per barrel

Brent North Sea crude: UP 0.3 percent at $74.24 per barrel

New York - Dow: DOWN 0.7 percent at 33,727.43 (close)

London - FTSE 100: DOWN 0.5 percent at 7,461.87 (close)

New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.