2014.03.1407:43:14UTC+00Nikkei slumps to 1-month low on firm yen as Ukraine

Japanese stocks slided 2.7 percent to a one-month low on Friday trading action as concerns over Ukraine and slowing development in China distract investors, underpinning the safe-haven yen and punishing exporters.

The Nikkei share average sagged down 395.04 points to 14,420.94 in mid-morning exchange after declining to a low of 14,408.62 earlier, the lowest since February 17.

"Investors are unwinding their long positions in the Nikkei and short positions in the yen," said Kyoya Okazawa, head of global equities and commodity derivatives at BNP Paribas.

"Short-term sellers like commodity trading advisors are also big players today and they are also reacting to the falling copper price."

On Thursday, copper continued its pullback on the London Metal Exchange after a brief bounce back on the previous day. It reach a 44-month low on Wednesday.

Nonferrous metal shares, which have been damaged over the past few sessions, continued their retreats. Dowa Holdings relinquished 3.0 percent to a nine-month low of 807 yen, and Sumitomo Metal Mining shed 2.0 percent to a five-week low of 1,240 yen.

Traders said investors stayed risk-averse amid the backdrop of dispute in Ukraine and soft data in China, adding that the benchmark Nikkei would likely aim for support at 14,000 if it surpassed Friday's futures and options settlement financial value of 14,429.87.

Market participants, citing projections by local brokerages, said that Nikkei futures and options contracts expiring in March likely closed at 14,429.87. The official agreement financial worth will be declared by the Osaka Securities Exchange after the market closes.

Markets remained nervous on surging tensions in Ukraine after Russia launched military exercises near its border with Ukraine.

Index heavyweight stocks led the sag downs. SoftBank Corp. gave up 1.8 percent and was the most exchanged stock by turnover, while Fast Retailing Co pulled back 2.7 percent and was the second-most exchanged stock.

Exporters were also battered after the dollar/yen hit the worst in over a week at 101.83 yen. A weak yen hurts Japanese exporters' competitiveness abroad as well as their dollar profits when repatriated.

Toyota Motor Corp slumped 2.3 percent, Nikon Corp. plunged 4.1 percent and Tokyo Electron Ltd. plummeted 4.2 percent.

The Topix setback 2.4 percent to 1,174.83, with all of its 33 sub sectors in downbeat area.

The JPX-Nikkei Index 400, a gauge comprising companies with high return on equity and strong corporate governance, recorded a 2.4 percent decrease to 10,624.75.