Japan shares fall as China stocks tumble on coronavirus fears

TOTO

03/02/2020 02:53

By Stanley White
    TOKYO, Feb 3 (Reuters) - Japanese shares fell on Monday,
tracking the sharp sell-off in Chinese shares on their first
trading day after the Lunar New Year break, as worries mounted
about the economic fallout due to the coronavirus outbreak in
China. 
    The Nikkei index  .N225  declined 1.10% to 22,956.66 by 0133
GMT, with consumer discretionary and information technology
sectors leading declines. The benchmark fell as much as 1.8%, a
10-week low. 
    Chinese markets  .CSI300 , which were closed since the end
of trade on Jan. 23, reopened on Monday with a decline of 8.06%.
    The total number of deaths from the virus jumped to 361 as
of Sunday, the country’s health authority said on Monday, as
several nations suspended flights, evacuated their own citizens
and closed borders to Chinese nationals.  urn:newsml:reuters.com:*:nB9N2A202S
    Economists have already warned the outbreak will weigh on
consumer spending, tourism, and factory activity in the world's
second-largest economy, which could weigh on Japan too, as China
is one of the country's top export markets. 
    Meanwhile, Japan's manufacturing activity shrank for a ninth
month in January as output and new orders contracted again,
pointing to further strains on the economy, a business survey
showed.  urn:newsml:reuters.com:*:nL8N2A301J
    There were 27 advancers on the Nikkei index against 196
decliners.
    The largest percentage loser on the index was department
store operator Isetan Mitsukoshi Holdings Ltd  3099.T , down
5.81%. The company lowered its profit forecasts on Friday after
market hours, partly reflecting an expected decline in Chinese
tourism to Japan.
    The second-biggest decliner was auto parts and metals
supplier Toyota Tsusho Corp  8015.T  losing 5.74%, followed by
Nippon Sheet Glass Co Ltd  5202.T  down by 5.48%.
    The largest percentage gainers on the index were processed
food and healthcare company Ajinomoto Co Inc  2802.T  up 7.09%,
followed by building materials maker TOTO Ltd  5332.T  gaining
3.98%, and industrial printing and electronic parts company
Seiko Epson Corp  6724.T  up by 3.21%.
    The broader Topix index  .TOPX  fell 0.71% to 1,672.46.
    The volume of shares traded on the Tokyo Stock Exchange's
main board  .TOPX  was 0.54 billion, compared with the average
of 1.09 billion in the past 30 days.

 (Reporting by Stanley White; editing by Uttaresh.V)
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