Tokyo: Nikkei falls most in 2 weeks as Ukraine war intensifies

[TOKYO] Japan's Nikkei index sank the most in almost 2 weeks on Friday (Mar 4), as the war in Ukraine intensified, but the benchmark escaped its lowest close in 15 months as the market stabilised in the afternoon session.

The Nikkei share average ended the day 2.23 per cent lower at 25,985.47, after dipping as much as 3 per cent in the morning to touch 25,774.28 for the first time since November 2020. Of the Nikkei's 225 components, 198 stocks fell.

The broader Topix slid 1.96 per cent to 1,844.94, recovering from earlier losses as steep as 2.42 per cent.

Investors were unnerved by reports of a fire at the complex of Europe's biggest nuclear power plant amid fierce fighting between Russian and Ukrainian troops. The fire was later put out by Ukrainian forces, and the US energy secretary said there was no indication of elevated radiation levels.

"Investors were on the risk-off mood globally because of the news on the fire at the nuclear power plant," said Chihiro Ohta at the investment research and investor services at SMBC Nikko Securities.

"Japan's Nikkei fell the most among other markets because investors used its liquidity and size for a risk hedge." The Nikkei fell for a third straight week, losing 1.86 per cent. The Topix shed 1.67 per cent, also its third weekly loss in a row.

Every Nikkei subsector sank on Friday, although energy stocks fell the least, buoyed by crude's rise on Russian supply worries.

Consumer cyclicals were the biggest losers, down 3.31 per cent.

Hino Motors was the Nikkei's biggest percentage decliner, slumping 14.76 per cent after local media reported the truck maker is being probed over emissions data. Parent Toyota Motor slid 3.57 per cent. Toyota Group supplier Denso declined 6.25 per cent.

Nissan and Suzuki, which have run afoul of regulators previously, sank 5.51 per cent and 4.91 per cent, respectively.

Chipmakers retreated, with Tokyo Electron's 3.82 per cent slide enough to make it the biggest decliner by index points.

Among its peers, Advantest sank 4.12 per cent and Renesas fell 3.77 per cent.

Startup investor SoftBank Group and Uniqlo clothing store owner Fast Retailing rounded out the Nikkei's top 3 drags, sliding 4.78 per cent and 1.97 per cent.

The nuclear plant woes though boosted some Japanese shares, with Mitsubishi Heavy Industries, whose products range from nuclear power generators to defense aircraft, was the Nikkei's top performer, jumping 4.59 per cent.

Shippers also rose, with Mitsui OSK Lines gaining 3.86 per cent and Nippon Yusen KK up 1.45 per cent. REUTERS