Tokyo stocks end lower on Ukraine tensions, despite possible Biden-Putin talks

TOKYO, Feb. 21 (Xinhua) -- Tokyo stocks ended lower Monday as the concerns about ongoing tensions between Russia and Ukraine weighed on investor sentiment even after reports of a potential summit between U.S. President Joe Biden and his Russian counterpart Vladimir Putin.

The 225-issue Nikkei Stock Average dropped 211.20 points, or 0.78 percent, from Friday to close the day at 26,910.87.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 13.63 points, or 0.71 percent to close at 1,910.68.

Decliners were led by metal product, electric appliance and land transportation issues.

The market pared earlier losses on growing tension on the Russian-Ukraine borders, brokers here said, following the White House's announcement that Biden and Putin had agreed to hold talks after French President Emmanuel Macron held separate phone talks with the two leaders.

The market temporarily regained a sense of calm, at least until a meeting between the two leaders is held, Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.

Other strategists said that for a top-level summit to occur there was still a long way to go and being that Washington's proviso for the talks is conditional, this could prove a sticking point, they said.

"There is still so much that is uncertain, including whether this summit will actually go ahead, leading to deep-rooted caution among investors," a trader at a domestic securities firm was quoted as saying.

"Let's see what happens at the foreign ministers' meeting first," the trader said.

By the close of play, metal product, electric appliance and land transportation issues comprised those that declined the most, while falling issues outpaced rising one by 1,466 to 621 on the First Section, while 95 ended the day unchanged.

Chipmakers lost ground and weighed on the Nikkei heavily, with Advantest dropping 1.9 percent, while Renesas fell 2.1 percent. Tokyo Electron slumped 2.9 percent to become the biggest drag on the Nikkei.

Automakers skidded down on concerns over rising materials costs and falling output, with Honda Motor reversing 0.7 percent, while Toyota Motor closed 0.5 percent lower.

Consumer electronic makers also came under pressure, with Sony Group losing 1.5 percent, while Nintendo closed down 1.2 percent. Sharp Corp., meanwhile, plunged 10.1 percent, following reports it replaced its chief executive officer.

Taiko Pharmaceutical was a noticeable loser, tumbling 9.1 percent, after reporting a net profit loss that was bigger than market expectations and owing to a loss in demand for its hygiene products.

On the main section on Monday, 938.59 million shares changed hands, dropping from Friday's volume of 1,125.66 million shares.

The turnover on the first trading day of the week came to 2,306.80 billion yen (20.07 billion U.S. dollars).