Tokyo shares opened lower on Thursday, after falls on Wall Street, as investors braced themselves for a possible global slowdown.

The benchmark Nikkei 225 index fell 0.97 percent, or 256.63 points, to 26,083.87 in early trade, while the broader Topix index dropped 0.89 percent, or 16.98 points, to 1,892.04.

Global players were “leaning into a defensive posture as investors contemplate the implications of Russia’s new oil ban and China’s reopening,” Stephen Innes of SPI Asset Management wrote in a note.

Russia decided to ban oil exports to nations that accept a price cap agreed among major economies including countries in the Group of Seven and the European Union.

China’s move to resume international travel cheered tourism businesses across the globe but also raised worries about the further spread of Covid.

Also weighing on the market was a belief that a slowdown will hit in 2023 as a result of monetary tightening by major central banks to fight inflation.

Investors were concerned that “a very aggressive tightening (happened) in a short period of time and with many countries facing recession,” said Craig Erlam of OANDA.

“Having started too late, central banks are now at risk of tightening too much and therefore overcompensating for a sloppy start with a painful exit,” he added.

In Tokyo, players searched for new clues before the Tokyo Stock Exchange officially ends trading for 2022 on Friday.

Many Japanese businesses started their new year break from Thursday and will reopen on January 4.

Overnight falls of US shares set the direction of the Tokyo market after the Dow lost 1.1 percent while the Nasdaq gave up 1.4 percent.

Rising US yields were also weighing on the market.

“The Japanese market had a soft start after US shares ended down,” online brokerage Monex said in a note.

The dollar stood at 134.17 yen, compared with 134.39 yen on Wednesday in New York.

Among major shares, Toyota lost 0.71 percent to 1,806 yen. Sony Group fell 1.28 percent to 10,050 yen.

Energy developer Inpex fell 3.87 percent to 1,414 yen. Cosmetics maker Shiseido dropped 2.66 percent to 6,370 yen.

But gamemaker Nintendo rose 0.11 percent to 5,626 yen. Game title publisher Square Enix Holdings added 1.31 percent to 6,170 yen.