Asian shares mostly lower as markets watch Ukraine tensions

TOKYO (AP) — Asian shares were mostly lower Tuesday, echoing a decline on Wall Street, amid concerns about a potential Russian military invasion of Ukraine.

Japanese shares started with a boost from bargain-hunting after recent losses, but the buying quickly ran out of steam. Data released Tuesday showed the economy grew at an annual rate of 5.4% in October-December, when pandemic restrictions were relaxed for a time after infections fell sharply before rebounding with omicron outbreaks.

“While Japan’s outlook is challenged by virus resurgences and supply chain disruptions, the Q4 data highlighted the potential for pent-up consumer demand once virus risks eventually abate,” said Yeap Jun Rong, market strategist at IG in Singapore.

Japan's benchmark Nikkei 225 shed 0.9% in afternoon trading to 26,839.51. Australia's S&P/ASX 200 sank 0.5% to 7,206.90. South Korea's Kospi lost 1.1% to 2,673.82. Hong Kong's Hang Seng declined 1.2% to 24,267.64, while the Shanghai Composite rose 0.1% to 3,431.80.

On Wall Street, the S&P 500 fell 0.4% to 4,401.67 after falling as much as 1.2% shortly after the U.S. said it was closing its embassy in Ukraine and moving all remaining staffers there to a city near the Polish border. Russia signaled Monday it could continue talking about the security grievances that have led to the crisis and offered some hope that war could be averted, even as Western allies have warned that Russian troops could move on Ukraine as soon as Wednesday.

The Dow Jones Industrial Average fell 0.5% to 34,566.17 and the Nasdaq composite ended essentially flat, at 13,790.92, after having been up 1% in the early going.

Smaller company stocks, which had been on pace for gains, also fell. The Russell 2000 slid 0.5%, to 2,020.79.

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