Asian stocks close mostly lower after US bans Russian oil

Asian stocks closed mostly lower on Wednesday (9), a day after the US suspended purchases of oil from Russia, further boosting prices of the commodity, in yet another sanction for the invasion of Ukraine.

The Japanese Nikkei index fell 0.30% in Tokyo, at 24,717.53 points, while the Hang Seng index slipped 0.67% in Hong Kong, at 20,627.71 points.

In mainland China, the Shanghai Composite was down 1.13% to 3,256.39 points, and the less comprehensive Shenzhen Composite saw a similar loss of 1.10% to 2,116.15 points.

With the exception of Asia, Taiex rose 1.13% in Taiwanese businesses, to 17,015.36 points. In South Korea, the Seoul Stock Exchange did not open because it was presidential election day.

Risk aversion prevailed in the Asian region after the US confirmed yesterday that it would no longer import Russian oil and natural gas, in yet another attempt to pressure Moscow to stop attacks in Ukraine.

The UK has pledged to do the same by the end of the year and the European Union has unveiled a plan to become independent of Russian fossil fuels “well before” 2030.

As a result of tightening Western sanctions against Russia, oil prices have been rising sharply since the beginning of the week.

Given the focus on the geopolitical scenario, the macroeconomic news remains in the background.

In China, the annual rate of producer inflation (PPI) decelerated from 9.1% in January to 8.8% in February, while the annual rate of consumer inflation (CPI) was unchanged from one month to the next in 0.9%.

In Oceania, the Australian stock market ignored the negative bias in Asia, supported by bank and technology stocks.

The S&P/ASX 200 advanced 1.04% in Sydney, breaking a three-session losing streak at 7,053.00.

With information from Dow Jones Newswires