🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Nikkei little changed as virus fears counter boost from softer yen

Published 21/02/2020, 04:33
© Reuters.  Nikkei little changed as virus fears counter boost from softer yen
US500
-
JP225
-
TOPX
-
7267
-
4689
-
5401
-
5406
-
FTEU3
-
4661
-
4755
-
IAIRL.T
-
IRAIL.T
-
ISTEL.T
-
ITEQP.T
-
7203
-

TOKYO, Feb 21 (Reuters) - Japanese shares were little

changed on Friday as mounting coronavirus cases in China and

other Asian countries offset the boost from a weaker yen ahead

of a long weekend.

By midday, the Nikkei share average .N225 was down 0.28%

at 23,413.81, while the broader Topix .TOPX gained 0.06% to

1,675.41. On the week, the Nikkei was down 1.2% and the Topix

dropped 1.6%.

That compared with a fall of 0.2% in U.S. S&P500 .SPX and

a 0.1% drop in FTSEurofirst .FTEU3 , as of Thursday.

"Japan stock ETFs have seen outflows of funds. At the

moment, investors favour U.S. and European stocks among the

developed markets," said Takeo Kamai, head of execution at CLSA.

The outbreak has already disrupted economic growth in China

and a further spread to other countries could derail a "highly

fragile" projected recovery in the global economy in 2020, the

International Monetary Fund warned on Wednesday. The epidemic that originated in China appears to be quickly

spreading to surrounding countries such as Japan and South

Korea, even though recent tallies from China have raised hopes

of some stabilisation there. Railway operators .IRAIL.T were among the worst-hit

sectors this week, falling as much as 3.3%, while airline

companies .IAIRL.T dropped 3.4%.

The worst weekly performer was steelmakers .ISTEL.T , hit

by a surprise decision from industry leader Nippon Steel

5401.T late last week that it will slash its production

capacity by nearly 10%. Kobe Steel 5406.T hit a 17-year trough on Friday,

following Nippon Steel, which hit similar lows earlier this

week.

As more people start to avoid crowds, Tokyo Disney Resort

operator Oriental Land Corp 4661.T lost 2.6%.

On the other hand, internet firms gained as the epidemic is

prompting many conferences and seminars to be held online.

Z Holdings 4689.T rose 4.3%, while Rakuten 4755.T also

gained 4.3%.

The yen's fall, however, helped to lift exporters such as

automakers. Toyota Motor 7203.T rose 0.9%, while Honda Motor

7267.T gained 0.4%. Transport equipment index .ITEQP.T added

0.6%.

The yen was headed for its worst week in two-and-a-half

years, as worries about the coronavirus' spread in South Korea,

Japan and Beijing drove funds from Asia to the towering U.S.

dollar. Trading was slow ahead of a long weekend in Japan as the

country gears up to celebrate the birthday of their new emperor

on Monday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.