Tokyo: Shares edge up on hopes for Russia-Ukraine negotiations

[TOKYO] Japanese shares reversed course to end higher on Monday (Feb 28) as investors hoped for a positive outcome from the planned talks between Russia and Ukraine, easing concerns about the economic impact of harsh Western sanctions against Moscow.

The Nikkei share average closed 0.19 per cent higher at 26,526.82, after falling as much as 0.8 per cent earlier in the day.

The broader Topix also recouped early losses to end 0.57 per cent higher at 1,886.93.

The United States and its allies on Saturday moved to block certain Russian banks' access to the Swift international payment system in further punishment of Moscow as it continues its military assault against Ukraine.

The Ukrainian president's office said negotiations with Moscow without preconditions would be held at the Belarusian-Ukrainian border. Russian news agency Tass on Sunday cited an unidentified source as saying the talks would start on Monday morning.

"There were no market moving catalysts except the news on Ukraine and the market fluctuated depending on that. Both indexes were lifted by hopes for the negotiations that could lead to a ceasefire," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

"Also the stocks, particularly smaller ones, became cheap so it is natural that investors scoop up those."

The Nikkei has lost almost 8 per cent and the Topix has fallen 5 per cent since the beginning of the year.

Uniqlo clothing shop owner Fast Retailing lifted the Nikkei the most, rising 0.1 per cent. Technology investor SoftBank Group erased its loses to gain 1.1 per cent. Air conditioner maker Daikin Industries was up 1.4 per cent.

Oil explorer Inpex rose 2.6 per cent as oil prices jumped.

Cigarette maker Japan Tobacco, which was among the firms that shut factories in Ukraine last week, lost 3.6 per cent. REUTERS