The Tokyo Stock Exchange opened sharply lower on Monday, as tensions around Ukraine escalated further over the weekend and suspense remains over the scale of the Federal Reserve (Fed)’s next rate hikes. .
The Nikkei star index fell 1.12% to 26,819.04 points after 1:00 GMT and the extended Topix index lost 0.91% to 1,906.80 points.
Moscow and Kiev on Sunday continued to accuse each other of being responsible for the new fighting in Ukraine’s separatist east, but diplomatic efforts continue on all sides.
US President Joe Biden and Russian President Vladimir Putin have “accepted the principle” of meeting at a summit proposed by French Head of State Emmanuel Macron, the Elysee Palace reported overnight from Sunday to Monday. .
Beyond geopolitics, uncertainty about the extent of monetary tightening to come in the United States was another source of nervousness for the Tokyo market.
Fed officials seem to be divided for the time being on the extent to which they should raise their key rates next month to curb US inflation without jeopardizing the economic recovery.
On the side of values
SHARP DISORIENTS ITS INVESTORS: the title of the Sharp electronics group plunged 11.11% to 1,168 yen. Investors seemed disconcerted by its plan announced Friday to buy all of its former subsidiary Sakai Display, which manufactures LCD panels and of which it currently only holds 20%.
Sharp, which has been majority-owned since 2016 by the Taiwanese group Foxconn / Hon Hai, had nevertheless tried last year to sell its remaining shares in Sakai Display.
On the side of currencies and oil
The yen stabilized against the dollar, at 115.05 yen on Monday around 01:00 GMT against 115.01 yen on Friday at 21:00 GMT.
The Japanese currency depreciated against the euro, which was worth 130.39 yen against 130.21 yen at the end of last week.
The euro was rallying against the dollar, trading for $1.1332 from $1.1322 on Friday.
The oil market remained driven by strong Russian-Ukrainian tensions: after 00:50 GMT the price of a barrel of American WTI gained 0.89% to 91.88 dollars and that of a barrel of Brent from the North Sea rose by 0.41 % at $93.92.
etb / roc