INSUBCONTINENT EXCLUSIVE:
Japanese shares closed lower on Monday, tracking a sharp sell-off in Chinese equities, on rising worries over the economic impact from the
coronavirus outbreak in China.
The Nikkei index ended 1.01 per cent lower at 22,971.94, with consumer discretionary and information
technology sectors leading declines.
Chinese markets, which were closed since the end of trade on Jan
23 for Lunar New Year holidays, reopened on Monday with a steep fall of more than 9 per cent.
The number of deaths from the virus jumped to
361 as of Sunday, the country's health authority said on Monday.
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.
"It is difficult to judge by only one day of trading, but sentiment will weaken if Chinese shares continue
to fall, which is bad for Japanese stocks," said Shusuke Yamada, head of FX and Japan equity strategy at Merrill Lynch Japan Securities Co
in Tokyo.
"It's uncertain how this will affect earnings-per-share ratios for Japanese stocks
So it is difficult to say where the Nikkei will find support."
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.
There were 41
advancers on the Nikkei index against 177 decliners.
The largest percentage loser on the index was materials manufacturer Unitika Ltd, down
Shares in the company, which makes materials used in surgical masks, fell as investors booked profits.
Department store operator Isetan
Mitsukoshi Holdings Ltd was the second-biggest decliner, ending down 6.85 per cent
The company lowered its profit forecasts on Friday after market hours, partly reflecting an expected decline in Chinese tourism to
Japan.
The third-biggest decliner was auto parts and metals supplier Toyota Tsusho Corp losing 6 per cent.
The largest percentage gainers
were processed food and healthcare company Ajinomoto Co Inc up 6.09 per cent, followed by drugs maker Eisai Co Ltd gaining 4.21 per cent,
and parcel delivery firm Yamato Holdings Co Ltd up by 4.17 per cent.
The broader Topix index fell 0.7 per cent to 1,672.66.
The volume of
shares traded on the Tokyo Stock Exchange's main board was 1.19 billion, compared with the average of 1.09 billion in the past 30 days