Japan Market extends losses on tensions over Ukraine

22 Feb 2022 , 05:05 PM

Japan share market finished lower for fourth consecutive session on Tuesday, 22 February 2022, as geopolitical uncertainty over Ukraine continued to weigh investors sentiments.

At closing bell, the 225-issue Nikkei Stock Average stumbled 461.26 points, or 1.71%, to 26,449.61. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 29.60 points, or 1.55%, to 1,881.08.

Total 30 of 33 TSE issues advanced, with bottom performing sectors were Marine Transportation (down 4.5%), Rubber Products (down 3.4%), Glass & Ceramics Products (down 2.6%), Insurance (down 2.6%), and Transportation Equipment (down 2.6%).

Tokyo market extended losing streak to a fourth trading day amid escalating geopolitical tension around Ukraine after Russian President Vladimir Putin said on Monday evening that he would recognize the independence of two Russian-led breakaway regions – Donetsk and Luhansk – of Ukraine.

Investors worry that a war between Ukraine and Russia could prolong elevated inflation in developed economies by disrupting supplies of important commodities. Russia is among the worlds largest suppliers of oil, as well as the biggest exporter of wheat, and a major metals producer. Ukraine is a major world supplier of corn and wheat.

Also, investors continue to try to assess by how much and how quickly the Federal Reserve will raise interest rates to tame inflation. Some Fed officials have pushed back against expectations that they will begin raising interest rates in March with a larger increase in the benchmark rate, while others have left the door open.

CURRENCY NEWS: The dollar fell past 115 yen in Tokyo trading on Monday amid heightened tensions over Ukraine. At 5 p.m., the dollar stood at 114.93-93 yen, down from 115.12-12 yen at the same time Friday.

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