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Japan shares slide for fourth day as pandemic fears grow

Published 27/02/2020, 10:13
© Reuters.  Japan shares slide for fourth day as pandemic fears grow
JP225
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JNIV
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TOPX
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8604
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9202
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8601
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9201
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4569
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IAIRL.T
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ISECU.T
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MTHR
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3137
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By Hideyuki Sano

TOKYO, Feb 27 (Reuters) - Japan's benchmark Nikkei fell for

a fourth day on Thursday, as investors were spooked by the rapid

expansion of the global coronavirus outbreak, with the United

States reporting its first possible community spread.

The Nikkei share average .N225 tumbled 2.13% to a

4-1/2-month low of 21,948.23, finishing below a major support of

its 200-day moving average, at 22,195, for the first time since

early September.

Analysts say the Nikkei could be supported at around 20,500,

where it will be traded on par with its book value.

The broader Topix .TOPX lost 2.37% to 1,568.06, the lowest

finish since Sept. 10, with trading volume topping three days in

a row, the first time in more than a year.

Investors are increasingly worried that the virus, which has

already caused massive economic disruption in China, is becoming

a pandemic.

The U.S. Centers for Disease Control and Prevention

confirmed an infection of the new coronavirus in California in

someone who had not travelled outside the United States or been

exposed to a person known to have the virus.

"The coronavirus is no longer an Asian issue. It has now

reached five continents. People initially thought the

January-March earnings will be hit but it will be over in

April-June. That now is being called into question," said Hozumi

Takuya, global investment strategist at Mitsubishi UFJ Morgan

Stanley Securities.

As investors' concerns grow, the Nikkei volatility index

.JNIV , a gauge of investors' expectations on future market

fluctuations, short up to 31.40, the highest since December

2018.

In a sign of broad selling, all of the Tokyo Stock

Exchange's 33 industry subindexes fell, led by a 4.9% drop in

the air transport index .IAIRL.T .

ANA Holdings 9202.T fell 5.3%, while Japan Airlines

9201.T lost 4.5%, both hitting multi-year lows.

Brokerage shares .ISECU.T , highly sensitive to economic

cycles, followed with a decline of 4.3%, with Nomura Holdings

8604.T down 4.3% and Daiwa Securities Group 8601.T losing

4.9%.

The index of Mothers start-up shares .MTHR dropped 4.3% to

a four-year low.

On the other hand, food delivery services firms were one of

the few bright spots, with Fundely 3137.T gaining 2.5%.

Kyorin Holdings 4569.T surged 10.7% following a report

that its subsidiary has developed a coronavirus test kit that

can cut test time to less than 30 minutes from current 6 hours.

(Editing by Jacqueline Wong)

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