Asian markets show resilience in face of Ukraine chaos
Asian shares are showing resilience despite high levels of uncertainty surrounding the situation in Ukraine. However, many investors are seeking a safe haven in assets such as gold as tensions rise.
Last night, world leaders condemned Russia's invasion of Ukraine while Britain, America and the EU vowed to boycott the planned G8 meeting in Sochi. As of yet, military actions by western powers are not on the cards and possible sanctions by EU nations are expected to be limited.
The EU has warned Russia that it may face "targeted measures,"should it fail to withdraw its forces to Russian bases and open negotiations with the Ukrainian government.
Japan has reported sluggish wage growth proving a another hurdle to higher inflation. The growth rate of labour cash earnings slowed from 0.5 per cent in December to -0.2 per cent in January. London-based consultancy Capital Economics had forecast a -0.1 per cent decline.
Capital Economics Japan Economist Marcel Thieliant commented:
Anemic wage growth was partly offset by higher employment. Aggregate labour income rose by 1.7 per cent year-on-year in nominal terms in the final quarter of last year, the strongest rise since the late 1990s. However, the numbers look much less impressive when higher inflation is taken into account. What's more, job growth slowed sharply in January, in line with business surveys.
The Nikkei is up 0.25 per cent while the Hong Kong Hang Seng Index is also up 0.35 per cent. South Korea's Kospi is suffering a decline of 0.47 per cent as the Shanghai Stock Exchange Composite Index is seeing a steeper decline of one per cent. However, the Tokyo Stock Exchange Tokyo Price Index is up 0.47 per cent.