World stocks rebound after Ukraine crisis sell-off

Associated Press

MUMBAI, India (AP) — Stock markets rebounded Tuesday after tumbling over the Ukraine crisis as Russian troops in border exercises were ordered back to bases and China prepared for a policy meeting that could advance economic reform plans.

Oil prices dropped after spiking 2.3 percent Monday on the possibility of Western sanctions against Russia for its military incursion into the Ukraine's Crimean peninsula. Russia is one of the world's leading energy exporters.

Futures pointed to a comeback on Wall Street. Dow futures and S&P 500 futures were both up 0.7 percent.

In Asia, Japan's Nikkei 225 added 0.5 percent to 14,721.48 and Hong Kong's Hang Seng rose 0.7 percent to 22,657.63. The Sensex in India gained 1.2 percent to 21,187.89 and Australia's S&P/ASX 200 rose by 0.3 percent to 5,400.20.

Other markets continued the downward trend of the previous day. China's Shanghai Composite edged down 0.2 percent to 2,071.47. South Korea's Kospi fell 0.5 percent to 1,954.11.

Markets worldwide suffered a sharp sell-off Monday after Russian forces entered the strategic Ukrainian peninsula of Crimea. Tensions remained high on Tuesday, but Russian President Vladimir Putin ordered tens of thousands of Russian troops participating in military exercises near Ukraine's border to return to their bases.

It was not clear if Putin's move was an attempt to heed the West's call to de-escalate the crisis that has put Ukraine's future on the line.

European markets regained their footing. Germany's DAX climbed 1.1 percent to 9,465.43 and the CAC-40 in France gained 1.5 percent at 4,348.75. Britain's FTSE 100 jumped 1.3 percent to 6,795.29.

Developments in Ukraine have dominated the start of what is likely to be a busy week on the economic news front. As well as a raft of U.S. economic data that culminates with Friday's nonfarm payrolls figures for February, investors have the monthly policy meeting from the European Central Bank to monitor.

Asian investors also are watching this week's meeting of China's ceremonial legislature, the National People's Congress, for any signs the ruling party is ready to follow through on an economic reform blueprint issued in November to give markets a "decisive role" in the economy.

Benchmark U.S. crude for April delivery was down $1.11 to $103.81 a barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $2.33 to close at $104.92 a barrel on Monday.

In currencies, the euro inched up to $1.3750 from $1.3736 late Monday. The dollar rose to 101.76 yen from 101.54 yen.

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