APAC Market Digest: Best US & ASX performers over the last 7 days of Russian conflict APAC Market Digest: Best US & ASX performers over the last 7 days of Russian conflict APAC Market Digest: Best US & ASX performers over the last 7 days of Russian conflict

APAC Market Digest: Best US & ASX performers over the last 7 days of Russian conflict

Equities 7 minutes to read
Jessica Amir

Market Strategist

Summary:  Better than expected US economic news boosts reopening stocks. While the oil price surged 8% to $111, its highest level since 2011 after Russian oil companies have started to collapse, with calls mounting oil could soon hit $150 if the situation worsens. Elsewhere, the Fed Chair signals rates will likely rise in March. So we reflect on the where smart money has been flowing over the last 7 days since Russia invaded and attacked Ukraine, and what you need to consider.

Co-written by Market Strategists Jessica Amir in Australia and Redmond Wong in Hong Kong. 

What’s happening in equites market

  • In the US overnight the Nasdaq 100 (USNAS100.I) and the S&P 500 (US500.I) charged 1.6% and 1.8% with believe it or not, with stocks like Paramount Global (PARA) rising the most (up 9%), while Las Vegas Sands (LVS) rose 10% due to the economic reopening. However most of the other strong performers were beneficiaries of the crisis in Ukraine with Steel giant Nucor (NUE) rising 5% and oil company Baker Hughes (BKR) shares rising 7%.
  • In Australia the commodity rich ASX200 (ASXSP200.I) rose for the 5th day, up 0.8% before 1pm Sydney time with oil and mining stocks surging. For the ASX200 from a technical perspective, it looks like the moving averages the MACD and RSI are pointing to a rally, suggesting a bullish trend could kick off. Today, Australia’s largest coal company Whitehaven Coal (WHC) rose 6%, followed by oil company Santos (STO), and coal heavy business Washington H Soul Pattinson (SOL). Elsewhere, investors seem to be taking a view that lithium will do well given the surging prices of oil. Lithium company Liontown (LTR) who has a non-binding offtake/sales agreement with Telsa, rose 5%. While most of the other strong performers were beneficiaries of the supply crunch in commodities caused by Russia and Ukraine supply being cut off. Nickel Mines (NIC) shares surged 5%, Oz Minerals (OZL) and IGO (IGO) followed.
  • In Asia, Hong Kong’s Hang Seng (HSI.I) opened higher by 0.7% and China’s CSI300 (000300.I) was up 0.4%. Hang Seng’s gain mostly attributed to HSBC (00005) which rallied 2% and Techtronic Industries (00669) which surged 8% following the release of strong earnings.  Shenzhou (02313) fell 15% after issuing profit warning.  In A shares, coal mining stocks surged. February Caixin China PMI Services came at 50.2 (vs consensus 50.7, Jan 51.4).  In Singaporethe Straits Times Index (STI) opened 0.8% higher.  February Market Singapore PMI came lower at 52.5 (vs 54.4 in January). Written by Redmond Wong.

What to consider

  • In Equites, be mindful further volatility is ahead as funds, ETF providers etc. exclude Russia. The index creator MSCI has removed Russia from emerging market status. This means Russia will be removed from Emerging Market ETFs, which will likely cause volatility in equites, as ETF providers will rebalance their portfolios.
  • In equities, some large ASX and US energy and coal stocks are up by 50% in 7 days. These are some of the biggest gains seen in 50 years. And there is likely more to come if the situation gets longer in the tooth. We’re increasing seeing 'smart' money favour commodities due to tightening supply. And since Russia invaded Ukraine 7 days ago, on Feb 24, energy and coal stocks have seen a lot of buying as Russian supply was cut off from the rest of the world and Russia has been the 3rd largest energy supplier in oil, gas and coal. This additional lack of supply is a real worry for consumers as it pushed up the price of oil to $111, its highest level since 2011.  Saxo’s head of Commodity Strategy thinks oil could hit $130 if the Russian situation gets worse. Bank of America says worse case is $200. See Saxo’s technical analysis on the levels to watch in oilMeanwhile, overnight the coal price surged to a brand new record all time high, after rising 100% this year.
  • So where is money flowing in the ASX and in the US this year? Well Energy stocks have been most bought stocks over the last 7 days, since this crisis unfolded. On the ASX Woodside (WPL), Beach Energy (BPL) and Santos (STO) which have been bought the most, and their stocks are trading up between 50-30% in 7 days. In the US; the most bought energy stocks are Occidental (OXY), APA (APA), Marathon Oil (MRO) and Haliburton (HAL), which are trading higher by between 40-60%  in 7 days. Click here for more on coal. 
  • Wheat prices are soaring amid the crisis and are now back at 2008 highs - don’t forget much of the world’s breadbasket comes from Russia, which is the largest exporter of Wheat and Ukraine is a top 4 exporter. And Ukraine’s export terminal is closed. So we are seeing a lot of clients buy wheat contracts through Saxo. And separately as for stand out grain stocks, the most bought grain stock on the ASX is GrainCorp (GNC) up 12% in 7 days.
  • In Hong Kong & the China A share markets:  China’s National People’s Congress (NPC) is scheduled to convene on Mar 5.  The NPC will discuss the country’s economy, growth target for 2022, budgets and government finance.  Economists are expecting this year’s GDP growth target at around 5% to 5.5%.  Written by Redmond Wong.

Trading ideas

  • Aside from the above considerations, consider that carbon capture storage (CCS) technology is rapidly advancing and being looked at, and could be used together with coal, given Russian natural gas and oil has been limited. Saxo’s Head of Equity Strategy Peter Garnry takes a look at the technological advances in carbon capture, and companies with exposure to carbon capture, coal mining and coal mining related services.

Upcoming earnings season calendar

  • In Hong Kong & China A Shares: Mar 3: Bilibili (09626), Weibo (09898), Trip.com (09961), Wharf Real Estate Investment (01997). In Singapore: Mar 3: Jardine Matheson (J36), Hongkongland (H78), Yangzijiang Shipbuilding (BS6)

For a global look at markets – tune into our Podcast 

For prior Australian market and APAC updates - click here. 


The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/en-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.