Tokyo Shares Weighed by Worries Over Ukraine

Japanese stocks moved lower early Monday, as a stronger yen and the unrest in Ukraine weighed on sentiment in Tokyo, at the beginning of a week that will be busy with regional earnings and economic news.

The Nikkei lost 1.3% as the yen strengthened closer to the Yen102 to the dollar mark. The dollar was last at Yen102.07, compared with Yen102.19 late Friday night in New York, with the safe haven currency firming up as U.S. and European governments planned to ramp up sanctions against Russia as early as Monday. The move comes as pro-Russian rebels in eastern Ukraine on Sunday paraded Western military observers as hostages.

Also weighing on sentiment in Japan was a disappointing earnings report from Japan's second-largest car company, with Honda Motor Co. losing 4.8% after its earnings guidance missed expectations. The company said that it expects its net income to rise 3.6% this fiscal year, but it is much slower than the recently ended fiscal year, when its net income soared by 56%.

Elsewhere in Asia, markets stuck close to the breakeven mark: Australia's S&P ASX 200 was less than 0.1% lower and South Korea's Kospi added 0.1%.

The region was preparing for upcoming events that could have a market impact. In Asia, the main piece of economic data will be Chinese manufacturing numbers for April, out Thursday; while out of the U.S., investors will be looking ahead to the Federal Reserve's policy meeting that concludes Wednesday and the monthly labor report at the end of the week.

In corporate news, pharmaceutical company Acrux sank 16% in Australia. The sharp fall came after its partner Eli Lilly reported a 27% drop in first quarter sales of testosterone treatment Axiron, leading Acrux to acknowledge that an expected $50 million milestone payment may not be met in the 2014 fiscal year.

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