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Japanese shares drop on pandemic worries on first day of new fiscal year

Published 01/04/2020, 03:43
Updated 01/04/2020, 03:48
© Reuters.
JP225
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TOPX
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4452
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4901
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9020
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9202
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9437
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IAIRL.T
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TOKYO, April 1 (Reuters) - The Nikkei share average dipped
on Wednesday on the first day of the Japanese new fiscal year as
investors braced for a global recession, sharp cuts in corporate
earnings and dividend payouts.
The Bank of Japan's "tankan" corporate survey showed
Japanese manufacturers turned pessimistic for the first time in
seven years. "Although the data was better than expected, it reflected
the impact of coronavirus on the economy," Yoshihiro Ito, senior
strategist at Okasan Online Securities said.
"We are likely to see a torrent of earnings downgrades and
dividend cuts ahead of earnings announcements."
The Nikkei fell 1.00% to 18,728.65 .N225 while the broader
Topix .TOPX lost 0.68% to 1,393.72.
Defensive shares that performed relatively well in recent
weeks were among the worst performers, as investors took profits
at the start of the new financial year.
Chemical and cosmetics firm Kao Corp 4452.T dropped 5.1%
while mobile carrier NTT DoCoMo 9437.T lost 3.8%.
East Japan Railway 9020.T lost 3.4% on mounting
speculation that the Japanese government may impose tougher
restrictions such as a lockdown in Tokyo to deal with rising
coronavirus infections in the capital.
Airlines .IAIRL.T were the worst performing sector among
the Tokyo Stock exchange's 33 industry subindexes, falling 4.5%.
ANA Holdings 9202.T lost 6.5%.
Fujifilm 4901.T bucked the trend to rise 3.5% as the
clinical test of its Avigan anti-flu drug for COVID-19 patients
started.

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