TOKYO: The Nikkei index pared big early losses but was still markedly lower by the midday break on Monday, as investors took a degree of comfort from news of a potential summit between US President Joe Biden and Russian counterpart Vladimir Putin.
The Nikkei share average ended the morning down 0.72% at 26,926.01 after losing as much as 2.11%. More than three times as many stocks fell as rose.
The benchmark index is down for a third straight day, retreating from the psychologically important 27,000-level.
Japanese shares track Wall St higher, tech stocks lead gains
The broader Topix sank 0.66% to 1,911.58, but was earlier off 1.83%. Growth stocks suffered bigger declines, with an index of the shares falling 0.87% compared to a 0.47% slide for value shares.
Biden and Putin have agreed in principle to a summit over Ukraine, US and French leaders said, following a week of heightened tensions spurred by Russia's military buildup all around the Ukrainian border.
"Continuing on from last week, the market is being swung by the latest Ukraine headlines," said a market participant at a domestic securities firm. "At the same time, any sense that Japanese stocks are expensive has evaporated, so it's also a chance for dip buying."
Chipmakers declined, with Tokyo Electron's 2.83% slide enough to make it the Nikkei's biggest drag by index points. Advantest lost 1.99% and Renesas slipped 1.76%.
Sony Group and Nintendo each slid 1.16%.
Sharp Corp tumbled 9.97% after the company announced it replaced its chief executive.
Shippers fell back after hitting a nearly five-month peak at the end of last week. Kawasaki Kisen Kaisha dropped 5.38% and Mitsui OSK Lines shed 3.83%.
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