Asian markets mixed_ eyes on Shanghai lockdown and Ukraine talks

Asian markets saw ups and downs on Monday with traders hopeful for some positive impact in talks between Russia and Ukraine this week_ though a phased Covid lockdown in Shanghai led to fresh concerns about already strained supply chains.

Growing expectations that the Federal Reserve will become increasingly aggressive in its drive to bring down inflation continue to dampen sentiment_ with Treasury yields -- a gauge of future interest rates -- surging.

With the Russian invasion of Ukraine now in its second month_ investors are hoping the two sides will be able to make inroads on ending the crisis when they meet in Turkey_ either on Monday or Tuesday.

Ukraine President Volodymyr Zelensky said that he hoped they would bring peace as soon as possible despite several previous rounds of talks failing to overcome disagreements about Kyiv's alignment with the West and Russia's occupation of eastern parts of the country.

But there is a hope that Moscow could be willing to de-escalate as its troops struggle to break dogged resistance from its comparatively much smaller opponent.

Zelensky has previously indicated he is 'carefully' considering a Russian demand of Ukrainian 'neutrality.'

Russian President Vladimir Putin ordered his military on Feb. 24 to destroy Ukraine's military and topple the pro-Western Zelensky_ bringing the country under Moscow's governance.

But senior general Sergei Rudskoi suggested a considerably reduced 'main goal' of controlling Donbas_ an eastern region already partly held by Russian supporters.

While the slither of hope for a ceasefire is providing some support to markets_ concerns about China's economy continue to keep optimism in check_ as Shanghai has been gone into Covid lockdown from Monday.

After the news_ global oil prices slided more than two percent Monday_ though they remain elevated by ongoing concerns about supplies caused by the war in eastern Europe.

Still equity markets were mixed_ with Hong Kong up more than 1% after suffering hefty losses Friday_ while Sydney_ Seoul_ Singapore and Jakarta were also higher. On the other hand_ Tokyo_ Shanghai_ Taipei_ Manila and Wellington fell.

Key figures around 0230 GMT

Tokyo - Nikkei 225: DOWN 0.6 percent at 27_987.20 (break)

Hong Kong - Hang Seng Index: UP 1.4 percent at 21_695.09

Shanghai - Composite: DOWN 0.4 percent at 3_199.22

Brent North Sea crude: DOWN 2.6 percent at $117.52 per barrel

West Texas Intermediate: DOWN 2.9 percent at $110.60 per barrel

Euro/dollar: DOWN at $1.0958 from $1.0981 late Friday

Pound/dollar: DOWN at $1.3153 from $1.3187

Euro/pound: UP at 83.31 pence from 83.25 pence

Dollar/yen: UP at 122.85 yen from 122.17 yen

New York - DOW: UP 0.4 percent at 34_861.24 (close)

London - FTSE 100: UP 0.2 percent at 7_483.35 (close)