Asian stock markets put on a dismal performance Monday, as brewing instability over Ukraine and weak official purchasing managers' index (PMI) figures from China sparked risk aversion among investors. Chinese shares, however, were the sole exception, trading in positive territory.
Ukraine mobilized for war on Sunday, calling up its reserves after Russian President Vladimir Putin threatened to invade in the biggest confrontation between Moscow and the West since the Cold War, Reuters reported on Sunday.
However, analysts see Ukraine's dampening impact on financial markets as short-lived. Jonathan Cavenagh, Senior FX Strategist at Westpac, told CNBC's Cash Flow, "I don't think the markets are going to take risk sentiment too far, at least until we have greater clarity in in Eastern Europe."
(Read more: Asian stocks may fall as Ukraine crisis deepens)
"Clearly, we've seen a risk-off tone in markets earlier on today but I think the market has seen enough reaction for now and the bigger issue for markets will be how the U.S. data unfolds, particularly the ISM survey tonight and payrolls report later this week. Those are bigger market movement events," he said.
Traders also digested China's latest PMI data. The official PMI, released Saturday, showed activity in the factory sector slowed to an 8-month low in February, reinforcing signs of a modest slowdown in the economy as demand weakens. The official PMI edged down to 50.2 in February from January's 50.5, just ahead of market expectations of 50.1.