The Nikkei Closed Lower Under Pressure

The Nikkei average ended Tuesday’s trading at its lowest level this month, weighed by expectations of a US interest rate hike, as investors factored in the repercussions of a possible Russian invasion of Ukraine.

The Nikkei fell 0.79 percent to close at 26,865.19 points, its lowest closing level since January 28.

In the wake of disappointing results, Kubota Thousands Industries plunged 12.6 percent, becoming the biggest loser on the index.

Investors are worried after the United States warned that Russia could invade Ukraine. This news raised energy prices, while increasing the risks of volatility in the market at a time when investors are also concerned about the possibility of the Federal Reserve (the US central bank) raising interest rates by half a percentage point next month.

Among the main losers were Tokyo Electron, which fell 2.4 percent, and SoftBank Group, which lost 2.9 percent.

The financial stocks sector was the worst performer on the Nikkei index, falling 2.44 percent, with expectations of profits reduced due to the decline in global long-term bond yields.

The broader Topix index lost 0.83 percent.