The raging coronavirus pushed Tokyo stocks much lower when they first traded in fiscal 2020 on Wednesday, as Nikkei’s benchmark average dropped more than 1,000 points at one point.
The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange closed at 18,065.41, down 851.60 points, or 4.50%, extending its loss streak to a third market day. . On Tuesday, he lost 167.96 points.
The TOPIX index for all first section issues plunged 51.96 points, or 3.70%, to end at 1,351.08, after falling 32.50 points the previous day.
The Tokyo market went south from the start, in the wake of the Wall Street slowdown on Tuesday, amid renewed concerns over an economic slump caused by the coronavirus pandemic.
Bank of Japan tankan A quarterly survey for March, published just before the opening bell, also pushed investors to sell, as the closely watched report showed the first negative reading of the business sentiment index for large manufacturers in seven years, said the brokers.
With coronavirus outbreaks in Japan and the United States in particular, showing no signs of slowing, stocks plunged deeper in the afternoon. Also weighed by the drop in futures contracts in the United States on the Dow Jones and the rise of the yen against the dollar, the Nikkei plunged 1,045.39 points towards the close.
“Uncertain as to when Tokyo would lock in, medium and long term investors stayed away for most of the day,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
In the first section, the decreasing emissions largely exceeded the increasing emissions from 2,056 to 100 while 10 emissions remained unchanged. The volume fell to 1.66 billion shares from 1.86 billion shares on Tuesday.
Technology and automakers were hit hard by the strengthening yen, with industrial robot maker Fanuc dropping 6.58% and automaker Honda 5.49%.
The ANA plunged 8.30 percent into media reports that the airline would put 6,400 flight attendants on temporary leave.
Nippon Sheet Glass fell 7.51% after the glass maker announced it would skip dividend payments for fiscal 2019.
Other notable losers included the drug maker Eisai and the seafood company Nippon Suisan Kaisha.
On the other hand, V-Cube, which manufactures video conferencing software, jumped 20.91%, up for the eighth consecutive session, against a backdrop of growing investor appetite for equities linked to telework.
In index futures on the Osaka Stock Exchange, the June key contract on the Nikkei average fell 890 points to end at 17,820.