Asia-Pacific Market Wrap: U.S. Sanctions Hit Russian Oil Giants; Crude Rises

  • October 23, 2025
  • Posted by: EWGFX
  • Category: news
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Key Headlines

  • U.S. Treasury announces new sanctions targeting major Russian oil producers Lukoil and Rosneft
  • Trump: Sanctions will “hopefully make Putin reasonable”
  • Ex-BOJ executive: Market pricing remains “too dovish”
  • Australia NAB business conditions: +6 (vs. +1 prior)
  • Canada’s Carney: “The decades-long process of economic integration with the U.S. is over”
  • Trump: Long meeting scheduled with Xi Jinping; “I think something will work out”

Market Snapshot

  • Gold: -$2 at $4,091
  • WTI Crude: +$1.60 at $60.10
  • S&P 500 futures: +7 points
  • Nikkei 225: -1.3%
  • FX: USD leads, JPY lags

Oil Markets

The major story overnight was Washington’s announcement of fresh sanctions on Russian oil, this time targeting energy giants Lukoil and Rosneft.
While details remain unclear — particularly regarding potential banking or secondary sanctions — markets reacted swiftly. WTI crude surged above $60, extending yesterday’s strong rally, as traders positioned for tighter global supply.

This could mark a new phase in the conflict, with the West intensifying its pressure on Russian energy exports. Reports suggest the U.S. is urging India to curb purchases of Russian crude, while Trump continues to lobby the EU to do the same. Still, history suggests Russian oil often finds its way to market, so chasing oil higher from here may be risky.

FX Markets

The U.S. dollar opened Asia trading on a stronger footing, recovering part of yesterday’s losses. The move appears more position-driven than fundamentally motivated, with no clear macro catalyst.
In Japan, the formation of Prime Minister Takaichi’s government has coincided with renewed yen weakness, resuming the trend that began after her leadership appointment.

Equities

Asian equities were mixed.

  • Nikkei 225 fell 1.3% after recent highs.
  • In the U.S. premarket, Tesla shares are down 5% and United Rentals off 7%, as both reported margin pressure, despite solid revenues — a sign that underlying demand remains resilient.
  • India’s Nifty 50 rallied 2.15% after returning from a holiday, buoyed by reports suggesting a potential U.S.-India trade deal that could lower tariffs on Indian goods to 15–16%.

Commodities

Gold steadied after heavy selling in the prior session. Prices briefly dipped to $4,066 before recovering, now near $4,090. Traders remain cautious but relieved that yesterday’s liquidation hasn’t continued.

Looking Ahead

Focus now shifts to Canadian retail sales later in the day, though broader markets are expected to remain range-bound ahead of Friday’s U.S. CPI report, which will be the next major catalyst for global sentiment.