Asia report: Stocks firmer as investors watch Ukraine situation

Markets were in the green in Asia on Tuesday, as investors weighed the latest developments in Russia’s invasion of Ukraine.

In Japan, the Nikkei 225 was up 1.2% at 26,844.72, as the yen strengthened 0.19% on the dollar to last trade at JPY 114.78.

It was a positive day for the benchmark’s major components, with robotics specialist Fanuc up 1.25%, Uniqlo owner Fast Retailing rising 2.36%, and technology investment giant SoftBank Group 2.09% firmer.

The broader Topix index was 0.54% firmer by the end of trading in Tokyo, closing at 1,897.17.

On the mainland, the Shanghai Composite was ahead 0.77% at 3,488.83, and the smaller, technology-heavy Shenzhen Composite managed gains of 0.35% to 2,326.25.

Fresh data out of Beijing showed China’s factory sector remaining in growth territory in February, with the official manufacturing purchasing managers’ index (PMI) coming in at 50.2 for the month.

That was ahead of expectations for a reading of 49.9, according to Reuters polling, and was just above January’s figure of 50.1.

A PMI reading above 50 points indicates expansion, while below 50 signals contraction for a sector.

Traders enjoyed a day off for the Independence Movement holiday in South Korea, while the Hang Seng Index in Hong Kong eked out an advance of 0.21% to 22,761.71.

“The fairly calm mood in the markets seems at odds with the escalating conflict in the Ukraine as the FTSE 100 ekes out modest gains on Tuesday following progress in Asian markets,” said AJ Bell investment director Russ Mould of the global situation on Tuesday morning.

“Investors, like almost everyone else, have little insight into what happens next in Ukraine or how Russia might respond to what it perceives as provocations by the West.

“Usually in these situations the uncertainty sparks indiscriminate selling of stocks and shares, however for now the sell-off has been fairly contained.”

Oil prices continued their advance as the region went to bed, with Brent crude last up 3.59% at $101.49 per barrel, and West Texas Intermediate rising 3.03% to $98.62.

In Australia, the S&P/ASX 200 was 0.67% higher at 7,096.50, as the Reserve Bank of Australia sated market expectations by keeping its cash rate steady at 0.1%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 jumped 1.84% to 12,197.92, led higher by payments technology company Pushpay, which was ahead 6.5%.

The down under dollars were mixed against the greenback, with the Aussie last 0.2% stronger at AUD 1.3742, while the Kiwi weakened 0.02% to NZD 1.4762.