Nikkei Reverses closes at 16-month low

Japan’s Nikkei index reversed course and closed at a 16-month low on Wednesday, tracking a slump in Asian markets, as investors assess the impact of the deepening conflict in Eastern Europe and a new US embargo on Russian oil.

The Nikkei fell 0.3 percent to close at 24,717.53 points, its lowest level since November 2020, after rising 1.1 percent earlier in the session. The broader Topix index also trimmed its gains and closed down 0.06 percent at 1758.89 points.

Thus, the two indices closed down for the fourth consecutive session..

Investors are cautious about the risks of inflation and a global economic slowdown in the wake of higher oil prices. US President Joe Biden imposed an immediate ban on imports of Russian oil and other energy in response to the invasion of Ukraine, in a move that could curb economic growth.

Nikkei was weighed down by a decline in employment agency Recruit Holdings, which fell 4.46 percent, while Kikkoman soy sauce maker lost 6.67 percent. Shares of Fast Retailing, owner of clothing store Uniqlo, gave up early gains to close 0.66% lower.

Car maker Isuzu Motors jumped 7.91 percent, becoming the best performer over the Nikkei, followed by Fujitsu computer maker, which rose 5.54 percent.

Shares of Tokyo Electric Power Co. fell 7 percent, the worst performer on the index.