European shares fell to a four-month low yesterday, with the auto and technology sectors leading losses following comments from the Kremlin quelled hopes for a quick solution to Europe’s biggest military crisis in decades.
According to “Archyde.com”, the European Stoxx 600 index fell 1.3 percent to close at its lowest level since October (October) due to fears of an escalation of the conflict between Russia and Ukraine.
The technology sector was among the biggest losers, with its index falling 2.6 percent to its lowest level since last March, continuing its decline for the fourth consecutive session.
French stocks touched their lowest level since early December, while German stocks fell to their lowest level in 11 months.
The European index has lost regarding 20.2 percent so far this year with concerns regarding Ukraine and amid the risks of monetary policy tightening from the US Federal Reserve and other central banks to combat inflation risks.
Markets in the US were closed yesterday for the Presidents’ Day holiday.
On the other hand, Japan’s Nikkei index fell yesterday for the third consecutive session following persistent fears of a possible Russian invasion of Ukraine pushed investors away from riskier assets.
The Nikkei index closed down 0.76 percent to record 2,6910.67 points, trimming most of its 2.11 percent losses in early trading, following reports of a possible summit between US President Joe Biden and his Russian counterpart Vladimir Putin, which calmed the atmosphere in the market.
The broader Topix index fell 0.71 percent to close at 1910.68, following falling to 1.83 percent earlier. Growth-related shares suffered larger declines, as its index fell 0.91 percent, compared to a 0.53 percent decline for the value shares index.
Shares of chip makers declined, as “Tokyo Electron” fell 2.94 percent, and “Advantest” and “Renesas” shares lost 1.88 percent and 2.11 percent, respectively.
Sony and Nintendo group shares also fell 1.53 percent and 1.19 percent. Shares of “Sharp” fell 10.12 percent following the electronics company announced the change of its CEO.
In addition, Chinese stocks stabilized at the end of trading yesterday, amid a decline in shares of financial services and infrastructure companies, and a rise in real estate shares and with the release of economic data.
Data from the National Bureau of Statistics revealed that new home prices in China rose in January on a monthly basis for the first time since September, by 0.1 percent.
The Chinese real estate company, Shinro Property Group, has warned that its current internal resources may not be enough to repay debt due in March, including a $200m perpetual bond it had previously announced its intention to redeem. At the end of the session, the Shanghai Composite Index settled at 3490 points, while the Shenzhen index rose by 0.61 percent at 2325 points, while the CSI 300 index declined by 0.36 percent, recording 4,634 points.
