Asian shares mixed as markets eye Ukraine, inflation worries

TOKYO (AP) — Asian shares were mixed on Monday as worries about the pandemic, inflation and the war in Ukraine weighed on market sentiment.

Benchmarks in Hong Kong and Sydney gained while Tokyo, Seoul and Shanghai declined.

Adding to concern over the economic impact from the pandemic, Shanghai went into a nine-day semi-lockdown. With China’s economic growth already slowing, the extreme measure could worsen unemployment, sap consumer demand and further complicate already snarled global supply chains.

The Shanghai Composite index edged 0.1% lower to 3,208.12.

More broadly, the war in Ukraine and inflation are clouding the global outlook. The Federal Reserve's moves to raise interest rates to counter surging prices are another worry in uncertain times.

“Heading into the new week, geopolitical tensions and the outlook for Fed’s tightening path may add some volatility in the markets. Over the many rounds of talks, it has shown that a peaceful resolution between Ukraine and Russia may be harder than expected,” said Yeap Jun Rong, market strategist at IG in Singapore.

Japan's benchmark Nikkei 225 slipped nearly 0.6% to 27,991.57, while Australia's S&P/ASX 200 gained 0.4% to 7,438.90.

South Korea's Kospi inched down less than 0.1% to 2,729.58. Hong Kong's Hang Seng surged 1.4% to 21,712.93.

The U.S. Federal Reserve has indicated it may continue to raise interest rates, as a way to curb inflation. Earlier this month, Fed officials raised their key rate a quarter-point from near zero to a range of 0.25% to 0.5%.

Meanwhile the war is adding to worries over instability, energy prices and economic slowdowns in various nations. Over the weekend, Ukrainian President Volodymyr Zelenskyy accused the West of cowardice, pleading for fighter jets and tanks to help defend his country...