Asian stock markets see downturn amid Ukraine war fears

Shares are down in Asian trading as investor jitters resurface following the shelling of a nuclear plant in Ukraine and broader concerns over the impact of Russia’s invasion of Ukraine.

Shares have fallen more than 2% in Tokyo and Hong Kong and are down in most other Asian markets.

Stocks rallied mid-week after Federal Reserve Chair Jerome Powell said he favored a modest interest rate increase at a policy meeting later this month. That reassured investors worried he might back more aggressive moves to fight inflation.

But Powell warned Thursday that the fighting in Ukraine is likely to further magnify the high inflation troubling world economies. He said he is committed to doing whatever is necessary to slow inflation, underscoring the high-risk challenge in raising interest rates enough to cool price pressures without triggering another recession.

Russia is a key oil producer and prices have been rising as global supplies are threatened by the conflict, raising concerns that persistent inflation could become even hotter.