Most emerging Asian currencies and stocks weakened on Friday amid heightened investor anxiety after reports that Russian forces had attacked a nuclear plant in Ukraine, with the South Korean won leading the losses among regional units.
Appetite for risky assets was sapped as Russia's offensive in Ukraine escalated.
Exacerbating geopolitical fears, a nuclear power plant in southeastern Ukraine, the largest of its kind in Europe, caught fire after it was hit by Russian troops, escalating the crisis.
While prices trimmed some losses on reports levels of radiation in the affected area had not risen, investors still remained anxious.
The won weakened 0.6% to its lowest level since June 2020. Meanwhile, the Singapore dollar slipped as much as 0.3% to its lowest level since Russia's invasion of Ukraine and bond yields edged 34 basis points lower to 1.849%.
South Korean stocks fell 1.3% as its tech giants were sold off after the attack in Ukraine, leading the currency lower too.
Sentiment for Korean assets was further dampened by data showing consumer inflation hit a near decade-high of 3.7% through February and over the central bank's target range.
"If CPI inflation hits 4%, then we expect the (Bank of Korea) to immediately respond by hiking rates again," analysts at ING said in a note.
Supply worries from the conflict in Ukraine have sent the prices of many commodities soaring, including oil, coal and natural gas, with Brent crude futures just shy of $120 a barrel, a nine-year high, which has rekindled fears of inflation.
Inflation in the Philippines, however, came in lower-than-expected but the central bank warned of rising inflationary risks from the Russia-Ukraine crisis.
The peso fell 0.1%.
Analysts at Barclays Bank noted that February's inflation print does not fully capture the latest round of oil price increases, which saw crude cross the $100 per barrel mark only on Feb. 24.
On the other hand, the region's major energy exporters Indonesia and Malaysia have stood to benefit from the high prices, with the rupiah and ringgit set to gain 0.1% and 0.4% respectively for the week, while other regional currencies were set to lose.
The Indonesian benchmark stock index also climbed 0.6% on Friday, boosted by coal miners, while most other share markets in the region were in the red.
The Indonesian index was 1.3% off the record peak it hit on Tuesday.
Malaysian stocks, however, slumped 1.2%, dragged down by oil refiners, who are likely incur higher costs from surging crude prices.
Stocks in Singapore, Thailand and the Philippines shed between 0.5% and 0.7%.
Highlights:
** Indonesian bond yields add 27 basis points to 6.577% ** Russia's rouble loses 0.4%
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