TOKYO: Japanese shares fell in see-saw trade on Monday as investors were worried about the economic impact of harsh sanctions imposed by Western nations on Russia for its invasion of Ukraine.
By 0207 GMT, the Nikkei share average was down 0.35% at 26,381.23 after falling as much as 0.8% earlier in the day. The broader Topix was down 0.09% to 1,874,46.
The United States and its allies on Saturday moved to block certain Russian banks' access to the SWIFT international payment system in further punishment of Moscow as it continues its military assault against Ukraine.
Tokyo stocks reverse losses to end higher
"Initially investors reacted to the news on the stricter sanctions against Russia and that sent shares significantly lower, but soon they calmed down and even became cautious about a sell-off," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
"Losses in the market narrowed as investors awaited some positive development from the negotiations between the two countries. Declines in the US futures were limited, so that also gave comfort to investors."
The Ukrainian president's office said negotiations with Moscow without preconditions would be held at the Belarusian-Ukrainian border. Russian news agency Tass on Sunday cited an unidentified source as saying the talks would start on Monday morning.
Chip-related stocks dragged the Nikkei the most, with Tokyo Electron and Advantest down 0.95% and 1.95%, respectively.
Cigarette maker Japan Tobacco, which was among the firms that shut factories in Ukraine last week, lost 2.64%.
Uniqlo clothing shop owner Fast Retailing lifted the Nikkei the most, rising 0.1%. Air conditioner maker Daikin Industries was up 0.84%.
Technology investor SoftBank Group erased its loses to edge up 0.3%, while oil explorer Inpex rose 2.08% as oil prices jumped.
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