TOKYO, Jan 29 (Reuters) - Japanese shares bounced back
modestly on Wednesday, partially clawing back hefty losses from
the previous session, even as the upside was limited on worries
related to the fast-spreading coronavirus.
The Nikkei share average .N225 rose 0.5% to 23,325.52 by
the midday break, one day after sliding 2%, while the broader
Topix .TOPX added 0.2% to 1,695.39.
Traders called Wednesday's weak bounce a mere technical
rebound, noting the lingering concerns about the virus outbreak
and its economic impact on the market.
The death toll from the China-linked virus rose sharply to
132 on Wednesday with nearly 1,500 new cases, heaping pressure
on Beijing to control the disease as U.S. officials said the
White House was weighing whether to suspend all flights to the
country. While mainland Chinese markets will remain shut this week,
markets resumed trading in Hong Kong on Wednesday following the
Lunar New Year holiday. Quite a few Chinese firms are listed in
Hong Kong.
"Some investors swiftly bought back Tokyo-listed shares as
Hong Kong's drop was not as massive as they had feared," said
Takehiko Masuzawa, head of sales trading for Japanese clients at
Macquarie Capital Securities.
Hong Kong's Hang Seng index .HSI shed 2.4% at 0230 GMT.
Shippers .ISHIP.T climbed 2.6% to become the best
performing sector of the Tokyo Stock Exchange's 33 subindexes.
Nippon Yusen KK 9101.T jumped 3.3% after the Nikkei
newspaper reported that Japan's largest shipping company was
likely to book 20 billion yen ($182 million) in recurring profit
for the October-December period, the highest quarterly figure in
three years. The company is due to announce its earnings results
for the April-December period on Friday.
Elsewhere, Unizo Holdings 3258.T soared 6.9% after U.S.
private equity firm Blackstone Group BX.N sweetened its
proposed offer for the company by 12% to 191.6 billion yen
($1.75 billion), topping a rival bid from U.S. buyout fund Lone
Star. ($1 = 109.7000 yen)