Asia's stocks decreased on Friday, with China's Shanghai Composite and Shenzhen Composite losing 0.66% and 0.83% respectively and Hong Kong's Hang Seng Index tumbling 2.51%. Japan's Nikkei 225 nosedived 2.42%, while South Korea's KOSPI dropped 1.3% and Australia's S&P/ASX 200 fell 0.83%.
Investors are concerned about the tense geopolitical situation in Western Europe. The sanctions imposed by the US and the EU may harm not only the Russian economy but also the world economy. International companies may face serious economic costs due to the sanctions.
However, this is not the only reason that worries investors. According to the latest reports, unemployment in January rose to 2.8% from 2.7% in December, while economists had expected the figure to stay firm at the December rate.
Among the constituents of the Nikkei 225 index, Hino Motors, Ltd. showed the worst performance, tumbling 16.8%. AGC Inc. and Nippon Sheet Glass Co. lost 9.9% and 6.7% respectively.
Meanwhile, Sony's stock fell 3.2% and Toyota Motor's dropped 3.6%. SoftBank Group's stock decreased 4.6% and Fast Retailing's was down 2.5%.
According to the US Fed, the Russia-Ukraine conflict may somewhat affect inflation as energy prices are likely to rise further. In addition, the regulator is expected to announce a 0.25% rate hike in March.
Today, data on the US labor market is scheduled for release. Nonfarm Payrolls in the US are forecast to increase 440K in February and unemployment to slow down to 3.9% from 4%.
In China, BYD Co. Ltd., JD.com Inc., and Meituan lost 7.4%, 7.1% and 6.8% respectively. Stocks of oil companies also fell 0.2%-0.4%.
South Korea won an exemption from the United States' expanded export restrictions on Russia over its invasion of Ukraine.
The stocks of the country's biggest companies – Samsung Electronics Co. and Hyundai Motor – decreased 1.8% and 2.5% respectively.
Likewise, Australia's largest firms incurred losses with BHP dropping 0.2% and Rio Tinto falling 1.1%.
