Tokyo stocks trade down more than 2pc on worries over Ukraine

AFP, Tokyo :
Tokyo stocks traded down more than two percent in early trade Monday, as investors reduced risky bets after the White House warned of a possible imminent Russian invasion of Ukraine. The benchmark Nikkei 225 index was down 2.41 per cent or 668.24 points at 27,027.84 in early trade, while the broader Topix index fell 2.20 per cent or 43.19 points to 1,919.42.
“Japanese stocks this week will likely see volatile movements, as US stocks dropped sharply while Japan was on a three-day weekend,” Okasan Online Securities said in a note. “The US government warned of the possibility of an imminent Russian invasion into Ukraine, which has increased geopolitical risks,” it added. Besides Ukraine, investors have also been nervous over the pivot in monetary policy from the US Federal Reserve and other central banks anxious to counter inflation, analysts said, as the US consumer price report last week showed stronger-than-expected price rises.
The dollar fetched 115.58 yen in early Asian trade, against 115.48 yen in New York late Friday. Among major shares in Tokyo, Toyota dropped 3.46 per cent to 2,176 yen after reports that trucker-led demonstrations in a key US border bridge in Canada forced the suspension of operations in some of the automaker’s plants. Nissan was off 2.34 per cent at 620.7 yen while Honda was down 0.30 per cent at 3,602 yen. Sumitomo Corp slipped 0.16 per cent to 1,880.5 yen after a report it evacuated employees from Ukraine. Electronic parts maker Murata Manufacturing dived 5.93 per cent to 7,907 yen after an investment bank revised down its evaluation of the firm’s shares. Chip-testing equipment maker Advantest dropped 2.92 per cent to 9,320 yen and chip-making equipment manufacturer Tokyo Electron was off 1.36 per cent at 56,370 yen.