Asia Stocks Slide as Geopolitical Tensions Roil Markets

 

Most Asian stocks declined on Friday amid escalating Russia-Ukraine tensions, impacting risk appetite. Japan's Nikkei also fell as the yen surged on strong inflation data. With the U.S. Thanksgiving holiday, Asian markets lacked guidance from overnight cues. U.S. index futures showed slight gains in Asian trading.

 

Russia's second attack on Ukraine's energy infrastructure heightened concerns, with President Putin threatening to target "decision-making centers" in Kyiv. Thailand's SET Index dropped 0.2%, Indonesia's Jakarta Stock Exchange Composite Index declined 0.8%, and India's Nifty 50 saw marginal gains.

 

South Korea's KOSPI dropped nearly 2% due to tech share declines and economic slowdown worries. Samsung Electronics and SK Hynix Inc faced losses. Australia's ASX 200 fell 0.3%, and Malaysia's FTSE Malaysia KLCI index slipped 0.2%.

 

In Japan, the Nikkei 225 fell 0.5% as the yen strengthened, following higher-than-expected inflation data. Core consumer prices in Tokyo exceeded projections, hinting at increased inflation pressure, raising expectations of a December rate hike by the Bank of Japan.

 

China's Shanghai Shenzhen CSI 300 index rose 1.6%, with the Shanghai Composite gaining 1.4%. Hong Kong's Hang Seng index surged 1.3% on reports of potentially milder U.S. sanctions on China's semiconductor industry. Shares of SMIC and Hua Hong Semiconductor Ltd climbed.

 

A Purchasing Managers Index expected on Saturday may reveal modest growth in China's manufacturing sector for November, reflecting Beijing's recent stimulus measures.