Asian and European stocks fall after Ukraine nuclear plant fire

Asian and European stock markets opened lower in early trading on Friday, and oil prices soared after a fire ripped through a nuclear plant amid fighting between Russian and Ukrainian troops, creating more uncertainty among traders. investors.

According to the RIA news agency, quoted by Reuters, the Ukrainian atomic energy ministry said that a generating unit at the Zaporizhzhia nuclear power plant, the largest of its kind in Europe, was hit during an attack by Russian troops.

Markets across Asia were in the red, with the Tokyo index down 2.5%, Seoul 1.1%, China 0.8% and Hong Kong 2.5%.

S&P 500 futures dropped 1.6% and Nasdaq futures 1.8%. MSCI’s broader stock index covering Asia Pacific and excluding Japan fell 1.6% to 585.5, the lowest level since November 2020.

European equities also fell, heading for their third straight week of declines. The pan-European index fell 1.4%. In Germany, the index was 2.2%, in France, 2.2, and in the United Kingdom, 1.4.

European markets have been at the center of a market ‘selloff’, fueled by concerns about the region’s geographic proximity to Russia and its heavy dependence on Russian gas.​

After information that the fire was extinguished and that there is no record, so far, of changes in radiation levels in the area, the indexes reacted, recovering part of the losses, but investors remain anxious.

“Markets are worried about a nuclear strike. The risk is a miscalculation or a disproportionate reaction, with the war prolonging,” said Vasu Menon, executive director of investment strategy at OCBC Bank.

Oil prices rose in early trading after finishing flat on Thursday, as the market looked to see if OPEC+ producers, which includes Saudi Arabia and Russia, would increase production from January.

The euro fell further and entered its worst week against the dollar in nine months, down 0.44% to $1.1022.