TOKYO: Tokyo stocks slipped in early trade Tuesday following positive readings for Japan's growth as investors grappled with fears Russia will invade Ukraine and fretted about US monetary tightening.
The benchmark Nikkei 225 index was down 0.21 percent or 56.77 points at 27,022.82 in early trade, while the broader Topix index was down 0.07 percent or 1.41 points at 1,929.24.
Investor attention was on Japan's GDP data for the three months to December, released 10 minutes before the opening bell.
It showed Japan's economy rebounded to grow 1.3 percent quarter-on-quarter in the three months to December, driven by higher demand after emergency virus restrictions were lifted, according to data released by the Cabinet Office.
Tokyo stocks trade down more than 2% on worries over Ukraine
The third-quarter growth for the world's third-largest economy was slightly lower than market expectations of 1.5 percent, and followed a revised 0.7 percent contraction in the previous quarter.
Tokyo investors echoed New York traders who ended Monday's session with slight losses, rattled by ongoing fears of Russian troops crossing the Ukrainian border.
The United States and its allies have vowed to respond to an invasion with tough sanctions on Moscow that could have ripple effects on global markets.
"The Japanese market will likely be moving within a narrow range with a wait-and-see attitude growing, as traders want to keep a careful watch on the Ukraine situation," Mizuho Securities said in a note.
Investors are also fretting about the strong possibility the Federal Reserve will in March make its first interest rate increase since Covid-19 broke out to stop runaway inflation in the United States, analysts said.
The dollar fetched 115.41 yen in early Asian trade, against 115.55 yen in New York late Monday.
In Tokyo, Kirin rallied 3.27 percent to 1,960 yen after it announced a better-than-expected net profit forecast for the year to March.
It also announced it will withdraw from Myanmar to end a joint venture with a firm tied to the country's ruling junta, as well as unveiling a share buyback.
Tiremaker Bridgestone was up 0.81 percent at 4,828 yen ahead of its earnings report due after the market close.
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