TOKYO, Feb 15 ― Tokyo stocks closed lower today as investors grappled with fears Russia will invade Ukraine and fretted about US monetary tightening.
The benchmark Nikkei 225 index ended down 0.79 per cent, or 214.40 points, at 26,865.19, while the broader Topix index lost 0.83 per cent, or 15.95 points, to close at 1,914.70.
The United States and its allies have vowed to respond to an invasion with tough sanctions on Moscow that could have ripple effects on global markets.
Japanese Prime Minister Fumio Kishida will speak with Ukrainian President Volodymyr Zelensky later Tuesday, a government source said, as Tokyo expressed "grave concern” about the risk of a Russian invasion.
Early investor attention on Japan's GDP data for the three months to December, released before the opening bell, was overwhelmed by ongoing fears about Russian troops crossing the Ukrainian border and the US Federal Reserve's plan to hike rates, analysts said.
Tokyo investors are "digesting US monetary tightening (plans) and geopolitical risks (linked to tension in Ukraine) while refraining from active buying ahead of release of minutes from the FOMC (Federal Open Market Committee) meeting,” strategist Hanako Konomura of Daiwa Securities said in a commentary.
Japan's economy rebounded to grow 1.3 per cent quarter-on-quarter in the three months to December, driven by higher demand after emergency virus restrictions were lifted, according to data released by the Cabinet Office.
The third-quarter growth for the world's third-largest economy was slightly lower than market expectations of 1.5 per cent, and followed a revised 0.7 per cent contraction in the previous quarter.
The dollar fetched ¥115.31 (RM4.18) in Asian trade, against ¥115.55 in New York late yesterday.
In Tokyo, Kirin rallied 4.21 per cent to ¥1,978 after it announced a better-than-expected net profit forecast for the year to March.
It also announced it will withdraw from Myanmar to end a joint venture with a firm tied to the country's ruling junta, as well as unveiling a share buyback.
Tyremaker Bridgestone ended up 2.34 per cent at ¥4,901 ahead of its earnings report due after the market close.
Among others, airlines closed lower with ANA Holdings down 2.70 per cent at ¥2,577 and Japan Airlines off 2.71 per cent at ¥2,336.
Toyota was off 1.31 per cent at ¥2,153.5, SoftBank Group fell 2.09 per cent to ¥5,158, and Sony Group dropped 2.28 per cent to ¥12,210. ― AFP
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