Asian shares mixed as Crimea vote raises Russia tensions

A man stops and looks at Japan’s Nikkei stock update on an electric board at a securities firm in Tokyo on March 12, 2014. Asian markets were mixed Monday, March 17, on renewed concerns over Ukraine after Crimea voted to break away from the former Soviet republic and join Russia, leading the West to warn of further sanctions against Moscow. AP PHOTO/JUNJI KUROKAWA

HONG KONG—Asian markets were mixed Monday on renewed concerns over Ukraine after Crimea voted to break away from the former Soviet republic and join Russia, leading the West to warn of further sanctions against Moscow.

Investors remain cautious following a sell-off last week fueled by weak Chinese data, while eyes are on the Federal Reserve’s policy meeting on Tuesday and Wednesday to see if it will announce any more stimulus cuts.

Tokyo slipped 0.35 percent, or 49.99 points, to 14,277.67 and Sydney shed 0.22 percent, or 11.8 points, to 5,317.6.

But Shanghai climbed 0.96 percent, or 19.33 points, to 2,023.673 while Seoul added 0.40 percent, or 7.63 points, to end at 1,927.53. Hong Kong fell 0.30 percent, or 65.54 points. to 21,473.95.

Crimea voted overwhelmingly Sunday to join Russia, further fueling tensions in the worst crisis between Moscow and the West since the Cold War.

While people in the predominantly Russian-speaking peninsula celebrated the result of the poll, Ukraine’s new pro-European leaders and the West branded it “illegal.”

The vote was organized after Russian forces seized de facto control of the region and pro-Moscow authorities took power in response to the ouster of Ukraine’s pro-Kremlin leader Viktor Yanukovych in February.

US President Barack Obama told his Russian counterpart Vladimir Putin in a phone call after the vote that a referendum that “occurred under duress of Russian military intervention, would never be recognized by the United States and the international community.”

He said the US and its European allies were “prepared to impose additional costs on Russia for its actions.”

“We’ve anticipated the results of the referendum. The key is what sanctions the US and the Europe will carry out and how Russia will respond to them,” said Masaru Ishibashi, head of the currency trading group at Sumitomo Mitsui Banking Corp.

And Osao Iizuka, head of foreign-exchange trading at Sumitomo Mitsui Trust Bank, told Dow Jones Newswires: “A further escalation of military tensions would lead to more risk-averse trading.”

Yuan weakens further against dollar

The developments added to selling pressure in Asia following last week’s losses in reaction to downbeat trade and industrial production figures out of Beijing.

The dollar was up in afternoon forex business, buying 101.57 yen compared with 101.36 yen in New York Friday afternoon.

The euro bought $1.3880 and 141.08 yen against $1.3906 and 140.73 yen.

In China the yuan weakened against the dollar after the central bank at the weekend doubled the currency’s trading band as it slowly embarks on long-anticipated financial reforms.

The People’s Bank of China said it would allow the yuan to move up or down two percent daily—double the previous one percent—on either side of a mid-point set under the guidance of the bank.

The Chinese unit was trading at 6.1541 to the dollar on Monday, according to the China Foreign Exchange Trading System, compared with Friday’s close of 6.1502.

On oil markets New York’s main contract, West Texas Intermediate for April delivery, was up four cents to $98.93 in afternoon trade, and Brent North Sea crude for May fell 36 cents to $107.85.

Gold fetched $1,378.76 an ounce at 1000 GMT compared with $1,370.09 late Friday.

In other markets:

— Bangkok added 0.36 percent, or 4.92 points, to 1,377.10.

Thai Airways International gained 4.14 percent to 15.10 baht, while telecoms company Advanced Info Service rose 1.85 percent to 220 baht.

— Kuala Lumpur’s main stock index gained 10.04 points, or 0.56 percent, to 1,815.16.

IGB ended 1.2 percent higher at 2.61 ringgit, while Genting gained 0.8 percent to 9.78 ringgit. Malaysia Airlines lost 4.2 percent to 0.23 ringgit.

— Singapore closed up 0.60 percent, or 18.42 points, at 3,092.14.

DBS bank gained 1.14 percent to Sg$15.91, while vehicle agribusiness company Wilmar International gained 1.77 percent to Sg$3.45.

— Jakarta ended down 0.05 percent, or 2.46 points, at 4,876.19.

Cigarette maker Gudang Garam fell 1.48 percent to 48,275 rupiah, while tin producer Timah lost 0.29 percent to 1,715 rupiah.

— Taipei rose 0.14 percent, or 12.47 points, to 8,700.01.

Taiwan Semiconductor Manufacturing Co. was 0.87 percent lower at Tw$114.0 while Hon Hai Precision gained 1.40 percent at Tw$86.7.

— Wellington added 0.17 percent, or 8.70 points, to 5,088.03.

Telecom gained 1.22 percent to NZ$2.48 and Air New Zealand was up 0.54 at NZ$1.87.

— Manila closed 0.14 percent higher, adding 8.75 points to 6,399.99.

JG Summit Holdings rose two percent to 51 pesos while SM Prime Holdings gained 1.81 percent to 14.66 pesos.

— Mumbai was closed for a public holiday.