Portugal Colonial - Asian markets track Wall St losses on Ukraine conflict fears

The losses matched a sell-off in New York and Europe on Friday as Western powers prepare for a conflict in eastern Europe after Russian President Vladimir Putin dismissed calls by US counterpart Joe Biden and others to pull back.

Governments have told their citizens to leave Ukraine and US national security adviser Jake Sullivan warned last week that an invasion could begin "any day now" and would likely start with "a significant barrage of missiles and bomb attacks".

German Chancellor Olaf Scholz was preparing to visit Kyiv and Moscow to try to head off the crisis that officials said had reached a "critical" point.

The prospect of a conflict compounded the gloomy mood on trading floors after data Thursday showed US inflation hit a forecast-busting 7.5 percent in January, ramping up pressure on the Federal Reserve to hike interest rates by more than expected.

After sharp losses on Friday on Wall Street, the dip continued in Asia.

Tokyo and Mumbai each shed more than two percent, while Hong Kong, Shanghai, Seoul, Jakarta, Wellington and Taipei were at least one percent down. Singapore and Bangkok were also off, though Sydney and Manila rose.

A "flight to safety for all markets will be the first order" if Russia invades, said Wai Ho Leong, a strategist with Modular Asset Management in Singapore.

"The impact on inflation will go beyond oil and gas," he warned. "For the rest of the world, it is potentially a massive food shock -- as Ukraine is a major exporter of grain -- mainly corn and wheat."

Wheat futures are up about eight percent since the start of the month.

Eli Lee at Bank of Singapore added that the volatility that had characterised markets so far this year would likely continue.

"In the scenario of military action, we could see a spike in oil and gas prices, which would exacerbate the issue of inflation over the near term, and result in a market-wide risk-off move," he wrote in a note.

"This would inject volatility into risk assets and cause a bid for safe havens such as the Japanese yen, the US dollar and gold."

Meanwhile, oil prices jumped more than one percent, closing in on the $100-a-barrel mark last seen in 2014, as investors grow increasingly worried about supplies in the event of a war.

The crisis comes with crude already tight, owing to a pick-up in demand as economies reopen after the coronavirus pandemic and people return to a more normal life.

- Key figures around 0710 GMT -

Tokyo - Nikkei 225: DOWN 2.2 percent at 27,079.59 (close)

Hong Kong - Hang Seng Index: DOWN 1.4 percent at 24,555.19

Shanghai - Composite: DOWN 1.0 percent at 3,428.88 (close)

West Texas Intermediate: UP 1.1 percent at $94.10 per barrel

Brent North Sea crude: UP 0.9 percent at $95.27 per barrel

Dollar/yen: DOWN at 115.33 yen from 115.48 yen late Friday

Euro/dollar: DOWN at $1.1339 from $1.1351

Pound/dollar: DOWN at $1.3538 from $1.3564

Euro/pound: UP at 83.77 pence from 83.64 pence

New York - Dow: DOWN 1.4 percent at 34,738.06 (close)

London - FTSE 100: DOWN 0.2 percent at 7,661.02 (close)

-- Bloomberg News contributed to this story --

A.F.Rosado--PC