The Nikkei got the new week off to a slow start by dropping to a new one-and-a-half week low after the first trading session of the week today (March 3rd).
It lost 1.3 per cent of its value over the session, ending the day down at 14,652.23, meaning the Nikkei is now on a four-day losing streak. It also closed at its lowest end point since February 20th, reports Reuters.
A stronger yen also had an impact on the health of the Nikkei today, as a weak yen is typically good news for the index's major global exporters as they get a better price for their goods.
Tensions in Ukraine have also caused concerns for investors, who are increasingly worried about the ongoing political issues in the eastern European country. Russian forces moved into the Crimea region of the nation over the weekend after Ukraine leader Viktor Yanukovych was forced out and replaced by Arseniy Petrovych Yatsenyuk.
Protesters had taken to the streets of Kiev to call for Ukraine to move away from Russia and instead lobby to join the European Union, but instead Russia looks to be reasserting its dominance over the country. Mr Yatseniuk has described Moscow's move to use military force as a "declaration of war".
As well as the 1.3 per cent loss for the Nikkei over the course of the session, there was a drop in the overall value of the broader Topix index, which slipped by 1.2 per cent. The JPX-Nikkei Index 400 was down as well, dropping 1.3 per cent to 10,831.08. It is an index that was launched this year comprising firms with high return on equity and strong corporate governance.
The Nikkei had hit a four-week high during last week's trading, only to slip back after investors started to take their profits out of the market. 2014 has been a volatile year for the index so far, as it has struggled to make progress after it had an excellent 2013, outperforming major global rivals such as the FTSE 100 in London and the Dow Jones in the US.
Learn about the Asian markets and CFD trading at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.