SYDNEY, March 12 (Reuters) - Japanese stocks plummeted on
Thursday, with the major indexes at three-year lows and in bear
market territory, as the United States rattled markets by
announcing a ban on all travel from Europe and world health
officials declared the coronavirus a pandemic.
The benchmark Nikkei average .N225 sank 5.2% to 18,412.24
points by the midday break, its lowest level since April 2017,
to fall into bear market territory.
If sustained through to the end of the day, it will be the
biggest one-day fall since November, 2016.
The Nikkei's volatility index .JNIV , a measure of
investors' volatility expectations based on option pricing,
jumped more than 10% to 52.09, its highest level since November
2011.
The World Health Organization described the new coronavirus
as a pandemic for the first time on Wednesday, adding that Italy
and Iran were now on the frontline of the disease and other
countries would soon join them. U.S. President Donald Trump said late Wednesday that
Washington will suspend all travel from Europe, except from the
United Kingdom, to the United States for 30 days starting on
Friday. Trade with Europe, however, won't be affected by the
curb. He also announced some other steps, including instructing
the Treasury Department to defer tax payments for entities hit
by the virus.
But investors were hardly convinced those measures will turn
around the global economy as concerns grew that the number of
infections could quickly snowball in many countries.
"I think markets are sending a clear signal to the White
House that the measures announced today were too little too
late," said Mick McCarthy, chief strategist at CMC Markets in
Sydney.
The broader Topix .TOPX shed 4.8% to 1,318.96, its lowest
since November 2016, to dive deeper into bear market.
All of the 33 sector sub-indexes on the Tokyo Stock Exchange
traded lower, with sea transport .ISHIP.T , real estate
.IRLTY.T and precision machinery .IPRCS.T being the worst
three performing sectors, while the TSE REIT index .TREIT
plunged 6.7%.
Among major names, Toyota Motor Corp 7203.T lost 4.0%,
SoftBank Group Corp 9984 dived 9.0% and Yaskawa Electric Corp
6506.T tumbled 7.9%.
Elsewhere, the index of Mothers start-up shares .MTHR
tumbled 5.2% to a seven-year trough.