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Nikkei drops, tourism shares hit by growing China virus concerns

Published 27/01/2020, 07:42
© Reuters.  Nikkei drops, tourism shares hit by growing China virus concerns
JP225
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TOPX
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4911
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9202
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9201
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2327
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4661
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4465
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4922
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6291
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9090
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9603
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IAIRL.T
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3161
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3604
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7198
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* Nikkei falls 2.0%, biggest in 5 months

* Airline, Tokyo Disney Land operator among hit hardest

* Suspicions of accounting problems hit Net One System,

Aruhi

* Maker of protective attire, masks, hospital apparatus soar

By Hideyuki Sano

TOKYO, Jan 27 (Reuters) - Japan's Nikkei share average

posted its biggest one-day loss in

in five months on Monday, with tourism-related stocks under

pressure amid fears that a virus outbreak in China could be more

deadly and harder to contain than initially thought.

The Nikkei share average .N225 slumped 2.03%, its biggest

percentage fall since Aug. 26, to end at 23,343.51 points, the

lowest finish since Jan. 8. The broader Topix .TOPX lost 1.61%

to 1,702.57.

China extended its Lunar New Year holiday and more big

businesses shut down and told staff to work from home in a bid

to contain the spread of the disease as the death toll rose to

81. "While we can't tell how much the disease will spread, one

thing we can say for sure now is that consumption in China is

already taking a hit as Beijing tries to contain the epidemic,"

said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust

Asset Management.

The Chinese government had barred outbound packaged tour

travel for Chinese travellers, denting shares of Japanese

companies that have benefited from a rising influx of Chinese

tourists. Topix airline shares subindex .IAIRL.T fell 3.4% to their

lowest since May 2017, with ANA Holdings 9202.T and Japan

Airlines 9201.T falling 3.0% and 3.9% respectively.

Shares of Oriental Land 4661.T dropped 7.8%, the biggest

fall in five years, following a Nikkei report that the operator

of Tokyo Disney Resort is likely to post its first fall in

profit in three years in the nine months ended December.

Travel and leisure firm H.I.S. 9603.T fell 6.8%, while

Keisei Electric Railway 9090.T , which runs trains to Tokyo's

Narita Airport from the city centre, shed as much as 6.2%,

largest loss in 3 1/2 years for the usually defensive stocks.

Cosmetic makers were also affected as their top-line has

been boosted by Chinese demand, with Shiseido 4911.T down 5.5%

and Kose 4922.T declining 5.9%.

On the other hand, protective outfit maker Azearth 3161.T

and Airtech Japan 6291.T , who manufacture various apparatus

for hospitals to prevent infections, rose by their daily limits,

jumping 23.7% and 17.1% respectively.

Niitaka 4465.T , which makes disinfectors, gained 21.8%

while mask maker Kawamoto Corp 3604.T shot up 21.6%.

Elsewhere, Net One System 2327.T , which has been reported

to have spearheaded fictitious transactions involving several

companies to pad profit, sank 23%.

Aruhi 7198.T lost 11.1% on media report of document

fabrication at the housing loan provider's franchise firms. The

company said it has not confirmed the existence of such

problems.

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