Kong (AFP) – Asian shares mainly nudged up Wednesday, as three days of agonising losses gave way to a sense of calm, as oil prices continued to gain after the United States and Britain’s decision to restrict Russian crude imports.
While the panic selling that characterized markets for two weeks subsided, experts warned of future volatility as Russia continued its invasion of Ukraine.
The crisis has fueled worries that the weak global recovery that began in COVID-19 would be overtaken by a period of stagflation, in which inflation soars and economies stagnate or decrease.
Commodity price inflation has been a significant driver of equity selling.
Crude is the primary source of concern since Russia’s withdrawal would exacerbate an already tight market. Russia is the third-largest oil producer in the world.
Wheat and a number of metals, including nickel, have already set new records.
There were fears that the US Vice President, Joe Biden, would put an embargo on Russian oil imports. Brent prices rose to a record high of $139 on Monday, just $8 short of the peak in 2008. They then fell back down.
However, confirmation of the ban on Tuesday and word that Britain would join by the end of the year sparked a fresh rally in the black gold.
Instead, EU states, which buy over 40% of their gas and a quarter of their oil from Russia, chose to establish a target of halving their Russian gas imports.
Wednesday morning, the contract was trading at $129, while WTI was trading near $125.
The news also snuffed out a Wall Street surge, with all three major indices closing in the negative.
However, most of Asia was able to make some money thanks to bargain-hunting.
Tokyo, Shanghai, Singapore, Sydney, Taipei, Manila, Jakarta, Wellington, and Taipei all saw growth. Hong Kong, on the other hand, saw a drop.
