Tokyo's Nikkei down nearly 1pc on virus outbreak fears

• Tokyo's benchmark Nikkei index lost nearly one percent on Thursday with risk appetite dampened by concerns over the spread of a new virus from China.
• The World Health Organization is to meet again Thursday to determine whether to declare a global public health emergency.

TOKYO: Tokyo's benchmark Nikkei index lost nearly one percent on Thursday with risk appetite dampened by concerns over the spread of a new virus from China.

The Nikkei 225 index fell 0.98 percent, or 235.91 points, to close at 23,795.44 while the broader Topix index finished down 0.78 percent, or 13.63 points, at 1,730.50.

"Investors tend to cash in to adjust their positions as news of the virus is widening every day," Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.

Global equities have been roiled this week by news of the Chinese virus outbreak which has killed 17 people and infected hundreds, with fears it could cause as much economic damage as the SARS epidemic that left hundreds dead in 2003.

The World Health Organization is to meet again Thursday to determine whether to declare a global public health emergency over the disease, which has also been detected in Thailand, Japan, South Korea, Taiwan and the United States.

"Over a short period, global stock markets could still be shaken up," said chief market strategist Masayuki Kubota at Rakuten Securities.

But he added: "Personally I believe that the impact of the virus on the global economy and stocks will be limited over the longer term."

Stock prices fell but bounced back during the 2014 outbreak of the Ebola epidemic that devastated parts of West Africa, he said.

The safe-haven yen also firmed against the dollar in a setback for Japanese exporters.

The greenback was changing hands at 109.55 yen in Asian afternoon trade against 109.84 yen in New York on Wednesday.

Official data showed Japan's trade deficit expanded 34.2 percent year-on-year in 2019, with exports to China dropping and the yen strengthening.

Airline equities lost ground on concern over the virus. ANA Holdings fell 2.17 percent to 3,506 yen and Japan Airlines dropped 1.88 percent to 3,230 yen.

Cosmetics maker Shiseido was off 1.37 percent at 7,470 yen on continued fears over lower demand from Chinese tourists.

IT investor SoftBank Group plunged 2.35 percent to 4,769 yen and Uniqlo clothing chain operator Fast Retailing dropped 1.58 percent to 62,180 yen.