- Leclerc, Sainz lament 'disappointing' Saturday in Singapore
- Bottega Veneta holds investors' aces as Madonna pops into D&G
- Beirut digs for victims at building flattened in Israeli strike
- Verstappen stages protest over 'ridiculous' swearing punishment
- Bayern boss Kompany lauds 'special talent' Olise
- Diaz fires Liverpool top of Premier League, Spurs bounce back
- Heavy fire over Israel-Lebanon border after deadly Beirut strike
- Ramos guides unbeaten Toulouse to Montpellier win despite Hogg scuffle
- Myanmar flood death toll jumps to 384
- Chelsea owners 'happy' with win at West Ham amid rift report
- Kane and Olise run riot as Bayern thump Bremen
- Ramos guides unbeaten Toulouse to Montpellier win
- Norris pips Verstappen to dramatic Singapore pole after Sainz crash
- Carey takes Australia to 270 in 2nd ODI against England after collapse
- Two Hezbollah leaders killed in Israel's Beirut strike
- Hungary Danube waters reach decade high after Storm Boris
- Bagnaia cuts Martin's MotoGP lead with Emilia-Romagna sprint win
- Jackson double fires Chelsea to victory at woeful West Ham
- Fiji beat Japan to lift Pacific Nations Cup
- Kasatkina to face Haddad Maia in Korea Open final
- S.Africa snowfall closes roads, strands motorists overnight
- Lawyers of women alleging Al-Fayed sex abuse receive over 150 new enquiries
- President Museveni's son backs Ugandan strongman for 7th term
- Norris quickest as Verstappen bounces back in Singapore practice
- Wallabies lament All Blacks' fast start
- Germany's Oktoberfest opens under tight security after attacks
- Environmental protesters block French cruise liner port
- Hezbollah in disarray after Israeli strike kills top commanders
- No place like home: Biden hosts 'Quad' leaders
- One dead, 7 missing as heavy rains trigger floods in central Japan
- Zelensky says no UK, US go-ahead to use long-range missiles
- New Zealand edge Australia 31-28 in Bledisloe Cup thriller
- Japan orders evacuations as heavy rains trigger floods in quake-hit area
- New Zealand pilot freed in Indonesia after 19 months in rebel captivity
- Hezbollah in disarray after Israeli air strike kills top commanders
- Leading climate activist released from Vietnam jail
- Ethiopians struggle with bitter pill of currency reform
- Sri Lanka votes in first poll since economic collapse
- Feminist author warns of abortion disaster if Trump wins US election
- US city of Flint still reeling from water crisis, 10 years on
- Arsenal's mean defence faces acid test to shut out Man City again
- Late surge lifts Thailand's Jeeno to LPGA Queen City lead
- DeChambeau says PGA's Ryder Cup decision 'just the start'
- Alcaraz defeated on Laver Cup debut
- Postecoglou embraces 'struggle' to make Spurs a success
- Nice hand 'ashamed' Saint-Etienne 8-0 Ligue 1 mauling
- Boeing CEO says ending strike 'a top priority'
- Stock markets mostly fall after Fed-fueled rally
- Harris slams Trump for hypocrisy on abortion as US starts voting
- Academy to host first overseas ceremony to honor young filmmakers
Asian markets fall and oil extends rally as Ukraine war rages
Asian markets fell further Tuesday, oil prices rallied again and nickel surged to above $100,000 as investors try to assess the impact of the Ukraine war on the world economy.
As Russia's invasion of its neighbour continues, commodity prices have been sent to record or multi-year highs, forcing observers to re-evaluate their outlook for the global recovery with some now warning of a period of soaring inflation and low growth or recession.
Monday's session saw a sea of red across trading floors after the United States said it was considering banning the import of crude from Russia, the world's number three producer, sending the price of Brent to almost $140 for the first time since 2008.
While the black gold eased back slightly from that peak, it remains elevated and continued to rise again on Tuesday.
Europe was not so keen on the US idea, with German Chancellor Olaf Scholz saying Russian oil and gas are of "essential importance" to the continent's economy. Roughly 40 percent of EU gas imports and one quarter of its oil come from Russia.
Meanwhile, Moscow warned that in retaliation for strict sanctions imposed on it for the invasion, it could cut off natural gas supplies to Europe via the Nord Stream 1 pipeline, adding further upward pressure to crude as investors bet on a search for other sources of energy.
European gas prices hit records Monday, while other commodities sourced from Ukraine and Russia also rallied, with wheat at an all-time high and nickel breaking $100,000 a tonne for the first time before easing back.
The crisis comes just as uncertainty was rising owing to surging prices caused by a spike in demand for oil, tight supplies and pandemic-induced supply chain snarls, among other things.
Meanwhile, central banks are starting to wind back the ultra-loose monetary policies put in place at the start of the pandemic as they try to get a grip on runaway prices.
And while analysts have lowered their expectations for how much and how quickly officials will tighten in light of the war, they still see a tougher investing environment down the line.
"It's all about slowing growth and rising inflation," Alifia Doriwala of Rock Creek told Bloomberg Television. "With the sanctions on Russia intensifying, it's hitting all sectors. Then you are going to have some central bank action amidst much uncertain economic growth."
After a rout on US markets, Asia was again well into negative territory.
Tokyo, Hong Kong, Singapore, Seoul, Wellington and Bangkok all lost more than one percent, while Shanghai and Taipei were off more than two percent. Manila sank more than four percent, while Sydney, Jakarta and Mumbai were also in the red.
"Disruptions to energy markets and the possibility of a geopolitical paradigm shift make for a highly unpredictable environment." said Stephen Innes, of SPI Asset Management.
"Given the length of time this has gone on with the possibility of all sides becoming further entrenched in their positions, the geopolitical situation seems likely to get worse before it gets better, although we should reach a point at which equities start to price in a light at the end of the tunnel before it becomes obvious."
And StoneX Financial's Matt Simpson added: "It was the sharp rise in oil which triggered the sell-off in equities as traders priced in stagflation worries once again.
"Should oil prices stabilise then it should remove some selling pressure across equity markets."
- Key figures around 0710 GMT -
Tokyo - Nikkei 225: DOWN 1.7 percent at 25,790.95 (close)
Hong Kong - Hang Seng Index: DOWN 1.6 percent at 20,722.91
Shanghai - Composite: DOWN 2.4 percent at 3,293.53 (close)
Brent North Sea crude: UP 3.1 percent at $127.01 per barrel
West Texas Intermediate: UP 2.5 percent at $122.41 per barrel
Dollar/yen: UP at 115.46 yen from 115.27 yen late Monday
Euro/dollar: DOWN at $1.0852 from $1.0858
Pound/dollar: DOWN at $1.3084 from $1.3109
Euro/pound: UP at 82.94 pence from 82.79 pence
New York - Dow: DOWN 2.4 percent at 32,817.38 (close)
London - FTSE 100: DOWN 0.4 percent at 6,959.48 (close)
J.Fankhauser--BTB