Tokyo: Stocks end lower as risks of imminent Ukraine conflict recede

[TOKYO] Japan's Nikkei share average continued to pare losses in Friday's (Feb 18) afternoon session, as investors took some solace from news that US Secretary of State Antony Blinken would meet Russian Foreign Minister Sergei Lavrov next week, suggesting an invasion of Ukraine wasn't imminent.

The Nikkei ended the day 0.41 per cent lower at 27,122.07, after sinking as much as 1.62 per cent early in the morning session.

The broader Topix declined 0.36 per cent to 1,924.31, paring earlier losses as steep as 1.33 per cent. Growth stocks suffered deeper declines, with a share index down 0.45 per cent versus a 0.28 per cent retreat for value shares.

"It looks like the market may calm down for the time being" after the news of the diplomatic meeting, said a market participant at a domestic securities firm.

"Ahead of the weekend, not just buying up stocks but selling off stocks is scary, so there's likely to be a retracement as stocks look oversold."

Chipmakers sank, with Tokyo Electron's 2.42 per cent decline enough to make it the Nikkei's biggest drag by index points. Peers Advantest and Renesas dropped 2.05 per cent and 1.25 per cent, respectively.

Factory robot maker Fanuc was the biggest percentage decliner, down 5.79 per cent, followed by Nikon's 4.25 per cent slide, and tech company Trend Micro's 3.67 per cent retreat after financial results disappointed investors.

Energy was the worst performing sector on the Nikkei, tumbling 2.26 per cent amid a decline in oil prices. Financials shed 0.99 per cent amid a retreat this week in global long-term yields as Ukraine worries weighed.

About 3 Nikkei stocks fell for every 2 that advanced.

Shippers were among the winners, with Mitsui OSK Lines, Kawasaki Kisen Kaisha and Nippon Yusen the Nikkei's 3 biggest percentage risers.

The larger gainer by index points was Uniqlo store operator Fast Retailing, which added 1 per cent, followed by startup investor SoftBank Group's 1.31 per cent jump.

For the week, the Nikkei booked a 2.07 per cent slide - resuming declines after a 2-week respite - as twists in the Ukraine saga weighed, even as the risks of accelerated monetary tightening in the US took a step down.

The Topix registered a 1.95 per cent retreat, also a first drop in 3 weeks.

"We're at a level where investors would want to buy the dip, but at the same time, the elevated geopolitical risk means it's just as easy to see another step lower depending on the news flow," said another market participant at a domestic securities firm. REUTERS