Asian currency and stock markets fell on Tuesday, reversing gains made in the past session after Russia ordered troops into two breakaway regions in eastern Ukraine in a dramatic escalation of a crisis that some fear could unleash a full-scale war.

Russian President Vladimir Putin's announcement drew international condemnation and immediate US sanctions to halt US business activity in the breakaway regions and ban import of all goods from those areas.

"Risk sentiment has soured, but the public holiday in the US has likely limited what would have been a sharper market reaction," analysts at NAB markets wrote in a note to clients.

The baht was down over 0.7% for its sharpest loss since Jan. 27, with the South Korean won following with a 0.3% fall.

The Indonesian rupiah, the Malaysian ringgit, the Singapore dollar and the Indian rupee eased between 0.4% and 0.1%.

Thai baht scales five-month high on capital inflows, most Asian fx mixed

"Market volatility is likely to stay high as investors continue to trade on headlines and on balance flows are skewed to safe havens because investors may be sceptical about any positive development for now," OCBC analysts said in a note.

In Singapore, analysts say January CPI data due Wednesday may provide an excuse for investors to bid the Singaporean dollar higher again.

Among emerging Asian stocks, Jakarta shares were down 0.9%.

South Korean shares fell nearly 2% on Tuesday and were set for their sharpest drop in almost a month amid the Russia-Ukraine tensions.

Similarly, Taiwan stocks extended losses for the third session, sliding over 2% in what could be their worst session since October last year.

Thailand's economy returned to growth in the fourth quarter, but the 2021 pace was one of the slowest in Southeast Asia and the recovery this year is likely to be modest as tourism remains well below pre-pandemic levels. Stocks in Thailand lost up to 1.2%.

Philippines shares bucked the trend to gain about 1%, after falling for the past three sessions.

Highlights:

** Leading the decline on S. Korean benchmark, chip giants Samsung Electronics and SK Hynix slid 1.75% and 1.92%, respectively, while battery maker LG Energy Solution dropped 2.32%.

** Indonesian 10-year benchmark yields are up 0.89 basis points at 6.503%

** India's blue-chip NSE Nifty 50 index fell 1.56% while the S&P BSE Sensex was down 1.62%