March 4: Asian equities and the euro slumped on Friday after news of a fire near a Ukraine nuclear facility. According to Reuters, the fire erupted following clashes between the Russian and Ukrainian forces, which heightened investor fears about the escalating conflict and sent oil prices higher.

The news agency further said that the risk-off appetite battered markets across the region, with European bourses set for a weak open as Euro Stoxx 50 futures while German DAX futures shed 2.6 percent and FTSE futures lost 1.4 percent.

A fire that broke out in a training building near the Zaporizhzhia nuclear power plant, the largest of its kind in Europe, during intense fighting between Russian and Ukrainian forces has since been extinguished, Reuters reported Friday citing the local authorities.

While that has helped ease some of the initial panic that hit markets earlier in the day, investors remain extremely anxious about the conflict.

"Markets are worried about nuclear fallout. The risk is that there is a miscalculation or overreaction and the war prolongs," Reuters quoted Vasu Menon, executive director of investment strategy at OCBC Bank, as saying.

Stock markets across Asia were in a sea of red, with Japan losing 2.5 percent, South Korea 1.1 percent, China 0.8 percent and Hong Kong 2.5 percent while commodities-heavy Australia was down 0.6 percent.

S&P 500 futures shed 0.3 percent and Nasdaq futures fell 0.41 percent, paring sharp losses from early trading. Overnight, Wall Street ended lower as investors remained on edge over the Ukraine crisis, while rising prices of commodities also weighed on market sentiment.

Investors sought refuge in safe-haven US Treasuries, sending yields on benchmark 10-year yields as much as 14 basis points lower to 1.7 percent, Reuters reported. They later inched back up to 1.79 percent.

Oil prices jumped on Friday after ending steady a day earlier, with the market also focused on whether the OPEC+ producers, including Saudi Arabia and Russia, would increase output from January.

Brent crude futures for May rose to as much as $114.23 a barrel and were last up 0.5% percent at $111. The contract fell 2.2 percent on Thursday.

There was no let-up in other commodities also, with Chicago wheat futures jumping nearly 7 percent, taking the weekly gain to more than 40 percent on supply side worries.

According to the news agency, economists said higher interest rates were needed to tame high inflation.

"Timely determined action from central banks is required to settle inflationary expectations as supply chain disruptions and rising energy prices boost current inflation. The war has intensified these forces," Bill Evans, chief economist at Westpac, was quoted as saying by Reuters.

"Central banks have the responsibility to ensure that high inflationary expectations do not become embedded in the system - risking a wage/price spiral. Despite the uncertainties of the war this task should not be compromised," he said.

Gold prices also rose in the international market on Friday, eyeing their best weekly gain since May 2021. Spot gold edged up 0.1 percent to $1,936.9, according to Reuters.

In currency markets, the euro lost further ground and was set for its worst week versus the dollar in nine months. It fell 0.3 percent to $1.10320 and traded above the day's lows. It has lost about 1.8 percent this week, which would be the euro's worst week since June 2021.