TOKYO, Feb 17 (Reuters) - Japanese stocks slid to a
1-1/2-week low on Monday, hurt by a worse-than-expected economic
contraction in the December quarter, while worries about the
business impact of the coronavirus epidemic continued to weigh
on the market.
The Nikkei average .N225 declined 0.7% to 23,523.24
points, its lowest closing since Feb. 5, while the broader Topix
.TOPX ended down 0.9% at 1,687.77, also a 1-1/2-week low.
All but two of the 33 sector sub-indexes on the Tokyo Stock
Exchange were trading lower, with air transport .IAIRL.T ,
foods .IFOOD.T and metal products .IMETL.T being the worst
three performers.
Japan's economy contracted at an annualised pace of 6.3% in
the October-December period, data showed on Monday, shrinking at
the fastest pace in almost six years and raising the risk it
could again slide into recession. Economists' median estimate
was for a 3.7% contraction. "We all knew that the figures were going to be weak, but the
actual numbers were still shocking," traders said.
Denting sentiment further were fears about a global economic
fallout from the virus, with the number of new cases in mainland
China rising by 2,048 to 70,548, and the death toll hitting
1,770. Outside China, more than 500 infections have been confirmed,
mostly in people who travelled from Chinese cities, with five
deaths - in Japan, the Philippines, Hong Kong, Taiwan and
France.
Concerns about the epidemic have made people careful about
attending outdoor activities and events in Japan, with Tokyo
marathon organisers reportedly cancelling entries from the
general public due to the coronavirus outbreak. Tokyo-listed amusement park operators Oriental Land Co Ltd
4661.T and Sanrio Co Ltd 8136.T lost 4.3% and 3.1%,
respectively.
Japan's top face mask maker Unicharm Corp 8113.T bucked
the overall weakness and climbed 4.1%.
Elsewhere, Kirin Holdings Co Ltd 2503.T tumbled 7.7% after
the brewer posted a net profit of 59.6 billion yen ($543
million) for the year-ended December, down 63.7% from a year
earlier. The firm also opposed a UK-based activist's
proposal to buy treasury shares worth 600 billion
yen. Nissan Motor Co Ltd 7201.T slid 2.1% to its lowest in
nearly 11 years, after losing 9.6% on Friday, as its French
partner Renault RENA.PA posted its first annual loss in a
decade. = 109.8200 yen)