Tokyo stocks were down more than two percent at the break on Tuesday, with investors cautious over geopolitical
risks linked to Ukraine and the Federal Reserve’s planned interest rate
hikes.

The benchmark Nikkei 225 index ended the morning session down 2.03 percent,
or 561.14 points, at 27,027.23, while the broader Topix index was off 2.03
percent, or 39.10 points, at 1,890.77.

“Uncertainties over US monetary policy and the Ukraine situation weighed on
early trade,” Okasan Online Securities said in a commentary.

Mizuho Securities noted that “a wait-and-see attitude” is expected to grow
ahead of a two-day Fed meeting where policymakers are expected to set the
stage for raising borrowing costs in March.

Joe Biden declared “total” unity among Western powers Monday after crisis
talks with European leaders on deterring Russia from an attack against
Ukraine, while 8,500 US troops were put on standby for possible deployment to
boost NATO.

The dollar fetched 113.80 yen in Asian trade, against 113.98 yen in New
York late Monday.

In Tokyo, Toyota was down 1.78 percent at 2,238 yen after the automaker
extended and revised its virus-linked temporary suspension of domestic
plants.

Nissan rose 0.97 percent to 605.7 yen while its smaller partner Mitsubishi
Motors eased 0.64 percent to 309 yen after a report said the firms along with
Renault will on Thursday announce plans to triple joint EV investments.

Sony Group tumbled 2.57 percent to 12,505 yen after Sony Music
Entertainment said Bob Dylan sold his entire back catalogue of recorded music
along with “the rights to multiple future new releases” to the company, the
latest high-profile deal of the recent music rights purchasing rush.

Sony did not disclose the financial terms of the deal.