Asian shares rise, eyeing Ukraine, higher energy costs

TOKYO (AP) — Asian shares were higher Tuesday as investors eyed the war in Ukraine and inflationary risks including rising energy costs.

Benchmarks rose in Japan, South Korea, Australia and China.

The Russian war on Ukraine and Western sanctions on Russia are adding to worries over disruptions to energy supplies for Europe and surging prices that might hinder progress toward economic recoveries from the pandemic.

“With no progress on peace talks, reports are circulating that the EU is setting the table for a Russian oil embargo. Higher energy prices will hugely harm the EU economy,” said Stephen Innes, managing partner at SPI Asset Management.

Benchmark U.S. crude added $2.89 to $115.01 a barrel Tuesday in electronic trading on the New York Mercantile Exchange. Brent, the international standard, surged $3.78 to $119.40.

Japan's benchmark Nikkei 225 surged 1.4% to 27,202.05. Australia's S&P/ASX 200 gained 0.9% to 7,341.10. South Korea's Kospi edged 0.8% higher to 2,708.63. Hong Kong's Hang Seng rose 1.8% to 21,606.53, while the Shanghai Composite recouped earlier losses to be up 0.3% at 3,263.83.

Hong Kong-traded shares in e-commerce giant Alibaba Group jumped 8% after the company increased a share buyback to $25 billion from $15 billion on Tuesday to prop up a stock price that has fallen by more than half since the ruling Communist Party tightened control over tech industries by launching regulatory crackdowns.

Shares ended modestly lower Monday on Wall Street after bouncing around for much of the day and bond yields rose sharply after Federal Reserve Chair Jerome Powell said the central bank was prepared to move more aggressively if need be to contain inflation.

The yield on the 10-year Treasury jumped to 2.30% from 2.14% late Friday.

The S&P 500 fell less...