Nikkei falls, dragged down by US stocks

Japan’s Nikkei fell on Monday as US stock futures weakened and the prospect of an escalation of Russia’s offensive against Ukraine weighed on market sentiment.

Fast Retailing, which operates Uniqlo stores, was among the biggest losers as China’s tightening of anti-Covid lockdowns worsened the country’s sales outlook.

The Nikkei index closed near its lowest level on the day, down 2.53 percent to 26,319.34 points. The broader Topix index fell 1.96 percent.

US futures pointed to declines on Wall Street on Monday amid concerns that rampant inflation will force the Federal Reserve to tighten monetary policy further.

Among the heavyweight decliners, Fast Retailing plunged 6.26 percent, while SoftBank Group, which invests heavily in Chinese startups, fell 3.5 percent.

Shares of chip makers fell. Tokyo Electron fell 2.02 percent and Renesas shares 3.51 percent.

JFE Steel fell 8.97 percent after it declined to give forecasts for the current fiscal year on Friday, citing an uncertain outlook.

Travel stocks also fell. Shares of HIS Tourist Travel fell 5.34 percent and ANA Air fell 5.05 percent.