Asian markets mixed, oil falls as investors track Ukraine war

Equity markets were mixed on Thursday as investors contemplate the impact of surging inflation and central bank plans to sharply hike interest rates, while oil prices dipped though remain elevated on fears of further Russia sanctions that could hit already thin supplies.

The recent rally across equities over the past week appears to have run its course for now as investors nervously track developments in the Ukraine war, with efforts to reach a diplomatic solution crawling along. All eyes are on meetings this week of NATO, where Joe Biden and other leaders are expected to discuss further punishing Moscow for the month-long invasion, while the European Union is still debating a possible embargo on Russian oil.

A warning from Russia that repairs at a terminal near a Black Sea port may take up to two months, causing a drop in exports of about one million barrels per day, added to supply worries. Both main contracts rallied more than five per cent Wednesday – with Brent back above $120 – and they continued to advance in early Asian business before falling back in the afternoon.

There was a little support from speculation about progress in the Iran nuclear deal, which could lead to...