investors watch Russia-Ukraine war, Covid wave in China

SINGAPORE — Shares in Asia-Pacific were mixed in Monday morning trade as investors monitor a Covid wave in China. Meanwhile, oil prices continued to be volatile amid the Russia-Ukraine war.

Hong Kong’s Hang Seng index dropped 2.77% in morning trade as shares of Chinese tech heavyweight Tencent fell 3.43%. Mainland Chinese stocks were also lower, with the Shanghai composite down 1.5% while the Shenzhen component shed 1.46%.

In Japan, the Nikkei 225 climbed 1.03% while the Topix index advanced 0.97%. The S&P/ASX 200 in Australia gained 1.07%.

South Korea’s Kospi lagged, dipping 0.54%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.99% lower.

Investors continued watching developments on the Russia-Ukraine war, which is disrupting shipping and air freight. Elsewhere, markets also monitored a recent wave of Covid infections in China — including the major city of Shenzhen.

The U.S. Federal Reserve is widely expected to announce a rate hike later this week, the first such move since 2018.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.049 after its recent bounce from below 98.