All focus turn to geopolitics after Putin announced recognising breakaway Ukrainian regions as independent states

Asian equities are pressured as all focus centres on geopolitics after Russian President Putin announced recognising breakaway Ukrainian regions as independent states. Risk-off flows and defensive plays should be monitored closely. Risk assets will continue to outperform as White House Deputy National Security Adviser Finer said they fully expect Russia to take military action. All signs on the ground suggest a step towards military action. The tech sector in Asia could get a hit as reports note that Japan will join US-led chip export sanctions on Russia.

On the macro front, China is expected to ease its monetary policy to warm its economy. Reports note that local analysts expect the PBoC to further reduce RRR and interest rates. Although some macro data is expected this week and month-end plays are on the radar, the risk is growing due to Russian and Ukraine tensions so that participants would look through the data and macro in this market conditions.