Russian markets dive as global selloff picks up

After overnight Monday trade in the United States saw the S&P lose 6.6%, Asian trade on Tuesday morning was wild with the Nikkei in Japan, Kospi in Korea and ASX in Australia more than 5% lower at various times, before staging a comeback late in the day.That saw the ASX and Kospi post gains with the Nikkei close 1.68% down, the Hang Seng in Hong Kong lose 5.66% and the Shanghai Composite 0.03% down with reports of market intervention by central banks.

Asian traders were given additional mildly negative news with Chinese inflation data rising to 6.5%, in a further sign that moves to rein in inflation were still not successful and adding to fears of a hard landing for the one economy offering hope to global investors.

The moves in Asia saw oil continue its slide over the last week with Brent Crude losing more than 2% to be hovering about the $101/bbl mark in lunchtime Tuesday Moscow trade and WTO below $80/bbl having lost more than 3%.

That backdrop has made for a volatile days trade in Moscow with the dollar denominated RTS, which accounts for about 20% of trading in Russian equities, being hit more heavily.Mid-afternoon Moscow trade sees the RTS down 8.49% on the day at 13.46 Moscow time, and the MICEX down 4.61% at 13.47.