Tokyo: Nikkei ends lower for fourth day as Ukraine crisis worsens

[TOKYO] Japan's Nikkei index slumped to a fourth day of losses on Tuesday (Feb 22), as sentiment soured further after an escalation in tensions around Ukraine.

The Nikkei share average ended 1.71 per cent lower at 26,449.61, but escaping losses that at one point were as steep as 2.5 per cent. The broader Topix shed 1.55 per cent to 1,881.08, also marking a fourth straight losing session.

Of the Nikkei's 225 constituent stocks, 199 fell. Consumer sectors were the worst performers, with basic materials and tech also suffering sizable losses.

The healthcare and energy sectors managed to eke out gains, with the latter buoyed by oil prices and the former lifted by drugmaker Daiichi Sankyo's 9.55 per cent rally after positive results for the Erhertu cancer drug it co-developed with AstraZeneca.

Japanese markets will be closed on Wednesday for a public holiday, putting market players in the mind to close out positions, traders said.

Russian President Vladimir Putin ordered the deployment of troops to 2 breakaway regions in eastern Ukraine after recognising them as independent on Monday, accelerating a crisis the West fears could unleash a major war.

"Risks around Ukraine have taken a turn for the worse, but at the same time, most of the potential near-term bad news has probably already been priced in by the market," said Makoto Kikuchi, chief executive of Myojo Asset Management.

January's 14-month low just above 26,000 is likely to provide firm support, he said.

Chipmaker Tokyo Electron was the biggest drag on Nikkei, tumbling 4.04 per cent. Peers Advantest and Renesas dropped 4.80 per cent and 5.53 per cent, respectively.

Electronics maker Sharp slid 8.30 per cent, becoming the biggest decliner for a second session after it changed its chief executive.

Automakers also sank, with Nissan declining 6.02 per cent and Toyota slipping 2.28 per cent.

Among consumer-oriented stocks, Uniqlo store-operator Fast Retailing lost 1.63 per cent and was the second largest drag on the Nikkei.

Sauce-maker Kikkoman slumped 4.89 per cent. REUTERS