Australia: Shares end lower as Ukraine crisis intensifies

[BENGALURU] Australian shares ended lower on Tuesday (Feb 22), with financial stocks and miners leading declines, as deepening tensions between Ukraine and Russia heightened market uncertainty.

The benchmark S&P/ASX 200 index closed 1 per cent lower at 7,161.3 after hitting a 2-week low earlier in the day. It gained 0.2 per cent on Monday.

Russian President Vladimir Putin ordered the deployment of troops to 2 breakaway regions in eastern Ukraine after recognising them as independent, worsening a crisis that has roiled global markets for weeks.

Financial stocks were the biggest drag to the benchmark and closed 1.5 per cent lower. The "Big Four" banks slid between 1 per cent and 2.1 per cent.

Miners retreated 1.1 per cent, with heavyweights BHP Group and Rio Tinto declining 0.9 per cent and 1.4 per cent, respectively.

Technology stocks were also in the negative, falling 3.2 per cent in the fourth straight day of losses. The subindex closed at its lowest level since July 2020.

Australia-listed shares of Block slumped as much as 7.3 per cent to a record low, while Xero and Wisetech Global dropped 3.1 per cent and 4 per cent, respectively.

"Technology stocks are overvalued, and investors look for companies that have strong cash flows and are not susceptible to trends," said Brad Smoling, managing director of Smoling Stockbroking, adding that tech stocks are the first to get dumped when uncertainty hits the market.

With most sectors caught in a sell-off, investors turned to safe-haven commodity stocks in a panic move, he said.

Domestic gold stocks advanced 1.9 per cent after bullion prices hit a near 9-month high. Sector major Newcrest Mining gained 2.3 per cent.

Oil prices jumped to a fresh 7-year high, driving domestic energy stocks 1.9 per cent higher. Heavyweights Woodside Petroleum and Santos gained 3.8 per cent and 3.2 per cent, respectively.

New Zealand's benchmark S&P/NZX 50 index closed 0.3 per cent lower at 12,114.63. REUTERS