Investing.com - Asian stock markets were mostly lower on Monday, as tension in the Ukraine flared over the weekend and amid ongoing concerns over the health of China’s economy.
During late Asian trade, Hong Kong's Hang Seng Index dropped 1.35%, China’s Shanghai Composite index rose 0.9%, Australia’s ASX/200 Index closed 0.38% lower, while Japan’s Nikkei 225 Index ended down 1.27%.
Geopolitical tensions mounted after Ukrainian Prime Minister Arseniy Yatsenyuk said Sunday that his country was "on the brink of disaster" after Russia's parliament authorized President Vladimir Putin to use military force in Ukraine.
Meanwhile, official data on Saturday showed that China’s manufacturing purchasing managers’ index fell to an eight-month low in February, adding to fears over a slowdown in the world’s second largest economy.
In Tokyo, the Nikkei fell sharply to hit a one-and-a-half week low as the yen strengthened against the U.S. dollar, weighing on sentiment.
USD/JPY fell to a one-month low of 101.24 earlier in the session, as heightened tensions in Ukraine underpinned safe haven demand.
A stronger yen decreases the value of overseas income at Japanese companies when repatriated, reducing the outlook for export earnings.
Automakers Toyota and Mazda saw shares fall 1.15% and 3.5% respectively, Sony lost 1.1%, while index heavyweights Softbank and Fanuc dropped 3.1% and 2.7%.
Meanwhile, in Australia, the ASX/200 Index edged lower as losses in the mining sector weighed on the benchmark index as investors digested downbeat Chinese manufacturing figures.
Australian commodity producers are heavily reliant on Chinese demand for raw materials.
Fortescue Metals Group dropped 1.65%, Atlas Iron slumped 1.5%, while BHP Billiton and Rio Tinto shed 0.9% and 1.6% respectively.
Elsewhere, the Hang Seng fell as losses in the financial sector weighed. Lingering concerns over the health of China’s economy and a weakening Chinese Yuan dampened sentiment.
China Construction Bank shares fall 1.5%, Industrial and Commercial Bank of China slumped 1.1%, while China Minsheng Bank and China Merchants Bank lost 1.7% apiece.
Looking ahead, European stock market futures pointed to a sharply lower open. The EURO STOXX 50 futures pointed to a loss of 1.65% at the open, France’s CAC 40 futures slumped 1.5%, London’s FTSE 100 futures indicated a decline of 1.2%, while Germany's DAX futures pointed to a drop of 2.2%.
Spain and Italy are to release data on manufacturing activity. Meanwhile, ECB President Mario Draghi is to speak in the European Parliament in Brussels.
Across the Atlantic, U.S. equity markets also pointed to a weaker open. The Dow Jones Industrial Average futures pointed to a loss of 0.8%, S&P 500 futures sank 0.9%, while the Nasdaq 100 futures indicated a fall of 0.9%.
The U.S. is to release data on personal spending, while the Institute of Supply Management is to release data on manufacturing activity.