The Nikkei closed higher as fears of an escalation in the Ukraine crisis dissipated

Japan’s Nikkei index recovered losses to end higher on Wednesday, after fears of an escalation in the Ukraine crisis faded after US President Joe Biden said an explosion in NATO member Poland may not have been caused by a missile fired from Russia.

The Nikkei index increased by 0.14 percent, to close at 28,028.30 points, while the broader Topix index fell by 0.05 percent, to 1,963.29 points.

The Nikkei index turned bullish after Biden said the missile that killed two people in Poland was likely not launched from Russia, after an emergency meeting of NATO leaders to discuss the strike.

Asian stocks fell after the explosion in Poland, which Ukrainian and Polish authorities said was caused by a Russian-made missile. Russia denied responsibility.

However, the Nikkei’s gains were limited amid fears of a slowing economy in the United States and Europe, as weaker-than-expected US inflation data raised fears of a slowing economy, said Ikuo Mitsui, fund manager at Aizawa Securities.

The insurance companies index fell by 3.33 percent, becoming the biggest loser among the 33 sub-indices on the Tokyo Stock Exchange.

T&D Holdings fell 4.08 percent, becoming the biggest loser on the Nikkei index.

Medical equipment maker Olympus fell 4.06 percent. 96 stocks rose on the Nikkei index versus a decline of 125.