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Japan stocks erase gains as China virus fears offset tech earnings hopes

Published 24/01/2020, 03:43
© Reuters.  Japan stocks erase gains as China virus fears offset tech earnings hopes
JP225
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INTC
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TOPX
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7202
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9064
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6857
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4021
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5707
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7003
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By Stanley White

TOKYO, Jan 24 (Reuters) - Japanese shares gave up early

gains on Friday to trade little changed as fears over a rising

death toll from the new coronavirus in China outweighed hopes of

an improvement in earnings of technology companies.

By 0159 GMT, the Nikkei index .N225 edged down 0.01% to

23,792.01, heading for a 1% weekly drop.

The markets started on a positive note as information

technology and industrial equipment stocks rose following

better-than-expected sales and profit forecasts from U.S.

chipmaker Intel Corp INTC.O .

But investors turned cautious after China said the death

count rose to 25 from the coronavirus, with 830 confirmed cases

as of Jan. 23 and as Chinese authorities placed two cities on

lockdown to contain the virus. Investors are worried the virus will continue to spread as

millions of Chinese travel during the week-long Lunar New Year

holiday starting on Friday.

Reports of more infections and deaths could dent travel and

tourism spending, which could impact earnings of airline and

consumer goods companies, while benefiting healthcare goods and

drugmakers.

On the Nikkei index, 103 stocks advanced against 115

decliners.

The biggest percentage loser was the non-ferrous metal

producer Toho Zinc Co Ltd 5707.T , down 2.6%, followed by

semiconductor testing equipment maker Advantest Corp 6857.T

and Isuzu Motors Ltd 7202.T , which fell 2.48% and 2.42%,

respectively.

The top gainer was the shipping company Yamato Holdings Co

Ltd 9064.T , up 2.66%, followed by shipbuilder Mitsui E&S

Holdings Co Ltd 7003.T , which gained 2.52% and Nissan Chemical

Corp 4021.T , up 2.17%.

The broader Topix index .TOPX fell 0.2% to 1,726.71. For

the week, the Topix fell 0.4%.

The volume of shares traded on the Tokyo Stock Exchange's

main board .TOPX was 0.41 billion, compared with the average

of 1.1 billion in the past 30 days.

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