SINGAPORE — Oil futures jumped and Asia-Pacific shares fell on Thursday as investors watched the escalating situation between Russia and Ukraine.
Russian President Vladimir Putin said in a public address that he had authorized a military operation in Ukraine, and NBC News reported explosions were heard in Kyiv.
Spot gold, traditionally a safe haven in times of uncertainty, rose 1.06% and last traded at $1,927.74.
Markets across Asia were in negative territory.
In Japan, the Nikkei 225 declined by 1.09%, while the Topix slid by 0.71%.
South Korea’s Kospi was down 2.62%. The Bank of Korea kept interest rates unchanged at 1.25% at its meeting on Thursday. However, it predicted that consumer price inflation will run “substantially above 3% for a considerable time.”
Hong Kong’s Hang Seng index was down more than 3%. Shares of Chinese artificial intelligence firm SenseTime Group plunged 10.16% after Hang Seng Indexes announced that its weighting in the Hang Seng Tech index when it is included in March would be 0.24%, revised down from 3.94%.
Australia’s S&P/ASX 200 fell 3.2%, with banks, miners and oil stocks largely down.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 3% lower.
On the earnings front, Alibaba will be reporting its third-quarter earnings late in Asia.
Concerns over the escalating tensions in Russia and Ukraine remain in focus.
U.S. Secretary of State Antony Blinken said Wednesday evening that Russian forces could engage in a full invasion of Ukraine before the night is over.
Ukraine on Wednesday announced that it intends to impose a state of emergency for 30 days with the possibility of an extension. The measure must first be approved by parliament. The country also warned its citizens to leave Russia and avoid traveling there.
The crisis entered a new phase this week when Putin said Moscow would formally recognize the independence of two pro-Moscow breakaway regions in eastern Ukraine.
On Wednesday, Russian state-controlled media reported that Moscow had started evacuating people from its embassy in Kyiv, Ukraine’s capital.
Overnight on Wall Street, the three major indexes continued to fall. The S&P 500 fell 1.8% and slid deeper into correction, while the Dow Jones Industrial Average dropped 1.38% to 33,131.76. The technology-focused Nasdaq Composite lost 2.6% to 13,037.49.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.425, up from 96.190.