The asian markets succumbed at the opening of the day, while oil and safe-haven assets rose early on Tuesday, after the Russian president Vladimir Putin ordered to send troops to two separatist regions in the east of Ukrainewhich intensified geopolitical tension and fear of conflict.
Investors ran riot after Putin recognized the rseparatist regions of Donetsk and Lugansk and ordered to send “peacekeeping” forces.
The prospect of war and strict sanctions raised fears of an impact on the supply of key goods, such as Petroleumwheat and nickel.
The rawwhich has risen more than 20% this year on surging demand, surged more than 3% on Tuesday and approached the $100-a-barrel mark for the first time since 2014.
Not even the prospect of a nuclear deal with Iran, which would allow Tehran to resume oil exports, could moderate the increase.
The hongkong stock exchange fell more than 3% and that of tokyo more than 2%, while Shanghai, Sydney, Seoul, Taipei and Bangkok lost more than 1%.
Losses were also recorded in Singapore, Manila, Jakarta and Wellington.
“It’s a fluid situation because of the changing geopolitical issues we have,” said Chris Weston of Pepperstone Financial Pty.
The uncertainty of the markets also valued the haven shares. Gold surpassed $1,900 and approached its highest level in the last year, while the Japanese yen strengthened against the dollar.
The US currency also strengthened against other currencies, including a 4% gain against the Russian ruble.
“Uncertainty continues to reign,” said Cristian Maggio of TD Securities. “In the event of an armed conflict, Russian assets will be significantly weakened more than now.”
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