NZ shares fall as Russia recognises separatist regions

The S&P/NZX 50 Index fell 41.7 points, or 0.3%, to 12,114.63. Turnover was $212 million.

In a televised speech, Russian President Vladimir Putin recognised two Ukrainian separatist regions – Donetsk and Luhansk – as sovereign states and ordered troops into the territory as "peacekeepers".

NZ’s foreign minister said she was concerned this was a "calculated act by President Putin to create a pretext for invasion”.

Jeffrey Halley, a senior market analyst at Oanda, said this quashed any positive sentiment that emerged from a proposed summit between himself and his US counterpart.