Tokyo: Nikkei ends lower for third day as Ukraine jitters weigh

[TOKYO] Japan's Nikkei stock index fell for a third consecutive session on Monday (Feb 21), as sustained worries about a potential Russian invasion of Ukraine pushed investors away from riskier assets.

The Nikkei share average closed down 0.76 per cent at 26,910.67, paring most of the 2.11 per cent drop in early trade, after reports of a potential summit between US President Joe Biden and his Russian counterpart Vladimir Putin soothed market nerves.

However, the number of declining stocks were 4 times more than shares that rose, with industrial and basic material companies leading losses.

The broader Topix fell 0.71 per cent to end at 1,910.68, after slipping as much as 1.83 per cent earlier. Growth stocks suffered bigger declines, with an index of the shares falling 0.91 per cent compared to a 0.53 per cent slide for value shares.

Biden and Putin have agreed in principle to a summit over Ukraine, US and French leaders said, following a week of heightened tensions spurred by Russia's military buildup all around the Ukrainian border. A decision on the summit will be taken after a meeting between the foreign ministers of the 2 nations next week.

"There is still so much that is uncertain, including whether this summit will actually go ahead," leading to deep-rooted caution among investors, a trader at a domestic securities firm said.

"Let's see what happens at the foreign ministers' meeting first."

Chipmakers declined, with Tokyo Electron dropping 2.94 per cent to become the biggest drag on Nikkei. Advantest and Renesas lost 1.88 per cent and 2.11 per cent, respectively.

Sony Group slid 1.53 per cent and Nintendo fell 1.19 per cent.

Sharp Corp tumbled 10.12 per cent and was the biggest decliner on Nikkei, after the electronics maker announced it replaced its chief executive officer. REUTERS