Nikkei returns to losses as weak profits weigh on Ukraine concerns

TOKYO, Feb 15 (Reuters) – The average Nikkei stock in Japan gave up early gains to end the morning session lower on Tuesday after disappointing financial results inflicted heavy losses on the index heavyweights Recruit Holdings and Kubota.

Sentiment also continued to be weighed down by worries about accelerating US monetary tightening and the threat of conflict in Ukraine.

The Nikkei (.N225) fell 0.27% to 27,006.66 at the midday break, after opening 0.38%.

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Staffing services firm Recruit (6098.T) fell 12.32%, making it both the biggest percentage drop in the Nikkei and the biggest drop in index points.

Construction machinery maker Kubota fell 11.34%.

The United States warned on Monday that Russia could soon invade Ukraine more, driving up energy prices and increasing the risk of market volatility even as investors worry about the possibility for the Reserve federal government to raise interest rates by half a percentage point next month. Read more

“Amid the earnings reports, we are getting a new set of negative drivers like rising oil prices and tensions in Ukraine, making it difficult for stock prices to continue higher,” a market participant said. of a national securities company.

Other notable declines included chipmaker giant Tokyo Electron (8035.T), which fell 0.74%, and startup investor SoftBank Group (9984.T), which lost 1. 18%.

Toyota Motor (7203.T) fell 0.71% and Sony Group (6758.T) fell 2.20%.

Financials was the Nikkei’s worst performing sector, falling 1.64% as a decline in global long-term bond yields reduced earnings prospects.

The broader Topix (.TOPX) slipped 0.23%. A 0.32% drop in the value stock index (.TOPXV) outpaced a 0.13% decline in growth stocks (.TOPXG).

At the other end, logistics firm Nippon Express Holdings jumped 9.50% on a positive earnings report, making it the biggest percentage riser in the Nikkei.

Advertising giant Dentsu (4324.T) rose 6.74%, also on favorable financial results, to be the biggest gainer in index points.

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Tokyo Markets Team Reports; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.

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