Australia: Shares drop as Ukraine-Russia crisis deepens

[BENGALURU] Australian shares fell on Tuesday (Feb 22) as tensions between Russia and the West grew after Moscow recognised 2 breakaway regions in eastern Ukraine as independent, while supermarket chain Coles Group jumped after beating estimates for first-half profit.

The S&P/ASX 200 fell 1.1 per cent to 7,150.8 by 11.50 pm GMT after closing 0.2 per cent higher in the previous session. Trading was thin due to a US holiday on Monday.

Russian President Vladimir Putin on Monday recognised 2 breakaway regions in eastern Ukraine as independent and ordered the Russian Army to launch what Moscow called a peacekeeping operation into the area, upping the ante in a crisis that could unleash a major war.

Australian technology stocks slid 3.4 per cent to lead the drop among blue chips and were on track for a fourth straight session of losses.

Block's Australian shares hit a record low, falling as much as 6.2 per cent, and the stock was the top drag on the sub-index. Xero fell 2.9 per cent.

Financials fell 1.6 per cent, posting their biggest intraday drop since early February, with all the so-called "Big Four" banks in negative territory.

Nanosonics, which manufactures and distributes ultrasound probe disinfectors, was the biggest loser on the benchmark after it flagged a hit to second-half revenue due to its revised sales model in North America.

Shares of Coles Group hit a 6-week high as the country's second-largest supermarket chain reported better-than-expected first-half profit.

Among other gainers, energy stocks advanced 0.7 per cent as oil prices rose overnight. Sector majors Santos and Woodside Petroleum added 2.3 per cent and 2.3 per cent, respectively.

New Zealand's benchmark S&P/NZX 50 index was down 0.2 per cent to 12,135.65 points by 11.50 pm GMT. REUTERS