Investors traded cautiously in key Asian markets on Monday (March 17), as Japan said it did not recognise a referendum in Crimea on seceding from Ukraine. Crimeas Moscow-backed leaders declared a 96-percent vote in favour of quitting Ukraine and annexation by Russia in a referendum on Sunday (March 16) which Western powers said was illegal and will bring immediate sanctions. Under the Ukrainian constitution, a change in territory must be decided by a referendum of the whole country. So this vote is unconstitutional. As outlined in the recent statement by the heads of G7 nations, this sort of referendum has no legal validity and Japan does not recognise its results, Japans top government spokesman, Yoshihide Suga, told reporters in Tokyo. Suga added that Tokyo will respond to sanctions against Russia in coordination with the Group of Seven leading economies. We call on Russia to respect international law and the territorial unity of Ukraine, and to not takes steps to annex parts of the country. In terms of action against Russia, we will cooperate with the member nations of the G7, he added. Japans benchmark Nikkei 225 index took a small dip into the red in choppy morning trading. South Korea stock market opened marginally higher, helped by investors engaging in bargain hunting following last weeks poor showing. The Korea Composite Stock Price Index (KOSPI) was up 0.07 percent at 1,921.15 points as of 0000 GMT. Hong Kongs benchmark Hang Seng Index (HSI) dropped 46 points on opening, according to local reports. By 10:40am local time (0240GMT), the HSI dropped by 0.07 percent at 15.8 points. Asian shares took refuge near one-month lows as Western countries issued fresh warnings of more sanctions on Moscow after Crimea voted overwhelmingly to break from Ukraine to join Russia, as expected. Chinese e-commerce giant Alibaba Group Holding Ltd has announced over the weekend its decision to hold its long-awaited IPO in the United States. The announcement is a blow to the Hong Kong stock exchange, which was initially the companys preferred venue for the IPO. In Beijing, Chinas Vice Foreign Minister Li Baodong told a news briefing that China was paying close attention to the situation in Ukraine. We hope that all sides can calmly exercise restraint, and prevent a further escalation or deterioration of the situation. They need to find a political resolution through dialogue and negotiation, he said. At the United Nations, 13 Security Council members voted for a draft resolution on Saturday (March 15) saying the Crimea result should not be recognized internationally, but Moscow exercised its veto while China abstained. In Australia, shares slipped 0.1 percent to hover at one-month lows.
Posted on: Mon, 17 Mar 2014 07:00:11 +0000
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