Japan Shares Fall on Sentiment Affected by Sanctions on Russia

Japanese stocks fell after a three-session rally to close lower on Wednesday, as growing concerns about the impact of Western sanctions imposed on Russia after its invasion of Ukraine prompted investors to shun risky assets and seek safe-havens.

The Nikkei index fell 1.68 percent to close at 26,393.03 points, while the broader Topix index fell 1.96 percent to 1859.94 points.

Global sanctions on Russia prompted a group of large companies to announce the suspension or exit of their activities in the country.

ExxonMobil said it would exit its operations in Russia, including oil-producing fields, following similar decisions by BP, Shell, and Norway’s Equinor.

In Tokyo, the technology sector was the biggest loser on the Nikkei, with chipmaker Tokyo Electron down 1.99 percent, robot maker Fanuc down 3.64 percent, and Daikin Industries down 3.75 percent.

The insurance companies sector was among the worst performers among the sub-sectors, falling 4.08 percent as the yield on US Treasury bonds fell to an eight-week low.

T&D Holdings plunged 6.31 percent, while Dai-ichi Life Holdings fell 5.21 percent.

The oil-exporting companies sector jumped 7.06 percent after the price of a barrel of oil exceeded $100.