TOKYO, Feb 15 ― Tokyo stocks slipped in early trade today following positive readings for Japan's growth as investors grappled with fears Russia will invade Ukraine and fretted about US monetary tightening.
The benchmark Nikkei 225 index was down 0.21 per cent or 56.77 points at 27,022.82 in early trade, while the broader Topix index was down 0.07 per cent or 1.41 points at 1,929.24.
Investor attention was on Japan's GDP data for the three months to December, released 10 minutes before the opening bell.
It showed 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.
Tokyo investors echoed New York traders who ended yesterday's session with slight losses, rattled by ongoing fears of Russian troops crossing the Ukrainian border.
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.
“The Japanese market will likely be moving within a narrow range with a wait-and-see attitude growing, as traders want to keep a careful watch on the Ukraine situation,” Mizuho Securities said in a note.
Investors are also fretting about the strong possibility the Federal Reserve will in March make its first interest rate increase since Covid-19 broke out to stop runaway inflation in the United States, analysts said.
The dollar fetched ¥115.41 in early Asian trade, against ¥115.55 in New York late yesterday.
In Tokyo, Kirin rallied 3.27 per cent to ¥1,960 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 was up 0.81 per cent at ¥4,828 ahead of its earnings report due after the market close. ― AFP
