Nikkei ends up as China markets get some respite from battering on virus scare

Umios

04/02/2020 06:29

By Stanley White
    TOKYO, Feb 4 (Reuters) - Japanese stocks edged up on
Tuesday, erasing early losses as Chinese shares steadied
somewhat after crumbling the previous day, but sentiment
remained fragile as investors fretted over  the growing economic
and human costs of a virus outbreak. 
    The Nikkei index ended up 0.49% at 23,084.59, stepping off
from a 10-week low hit in the previous session. Shares in the
technology and consumer stables sectors rose.
    Chinese stocks  .CSI300  rose 2.47% on Tuesday, but that
came after a plunge of over 8% the previous day when mainland
markets opened for the first time since an extended Lunar New
Year holiday, a period in which financial markets were roiled by
the rapid spread of the virus.
    The total number of virus deaths in China reached 425 as of
Monday, from 20,438 cases, and analysts have warned that growth
in China and globally is likely to take a hit from the epidemic.
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    The People's Bank of China has flooded the economy with cash
while trimming some key lending rates, but analysts suspect more
will have to be done to offset the economic fallout from the
virus.  urn:newsml:reuters.com:*:nL4N2A214Y
    "We cannot be sure when this will be over, but the PBOC has
taken some measures on rates and liquidity that have supported
Chinese markets," said Kiyoshi Ishigane, chief fund manager at
Mitsubishi UFJ Kokusai Asset Management Co in Tokyo.
    "Prior to the virus, the concern was that stocks were
overheating. Now some investors are buying the dip, focusing on
individual Japanese shares with good earnings and financials."
    Investors were seen buying into some of the battered stocks
on the day.
    There were 156 advancers on the Nikkei index against 64
decliners.
    The largest percentage gainers in the index were electronics
conglomerate Panasonic Corp  6752.T  up 10.04%, followed by
industrial equipment maker Ebara Corp  6361.T  gaining 9.41%,
and soy sauce maker Kikkoman Corp  2801.T  up by 5.81%.
    Panasonic got a boost after reporting its first quarterly
profit at its U.S. battery venture with electronic car maker
Tesla Inc  TSLA.O  on Monday.
    The largest percentage losses in the index were materials
company Unitika Ltd  3103.T  down 5.88%, followed by seafood
processor Maruha Nichiro Corp  1333.T  losing 4.38%, and
investment bank Nomura Holdings Inc  8604.T  down by 2.76%.
    The broader Topix index  .TOPX  rose 0.69% to 1,684.24.
    The volume of shares traded on the Tokyo Stock Exchange's
main board  .TOPX  was 1.28 billion, compared with the average
of 1.1 billion in the past 30 days.

 (Reporting by Stanley White
Editing by Shri Navaratnam)
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