Asian equities recovered modestly on Tuesday from an acute selloff in the previous session fueled by brewing instability in Ukraine. Shares in Tokyo and Sydney clawed back losses after sinking to new lows on Monday.
Commenting on Monday’s risk aversion in financial markets, Patrick Chovanec, Chief Strategist at Silvercrest Asset Management told CNBC’s Asia Squawk Box, “The geopolitical significance of (Ukraine) is huge. The economic (impact), not so much. I think it is important to put into perspective that Ukraine’s gross domestic product (GDP) is only about 7 percent of Greece, and it is not part of any global supply chain… So i think markets are a little over reacting to the economic impact, even if things get worse in Ukraine.”
Russia on Monday cemented its control over Ukraine’s Crimean peninsula after Russian President Vladimir Putin declared he had the right to invade his neighbor. As the crisis deepened, the United States has suspended all military engagements with Russia, including military exercises and port visits, as part of Washington’s response.
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