The falls in Tokyo market came as intense fears about a slowdown in global growth caused by the rapid global spread of deadly coronavirus and to disrupt global trade. Most new virus cases are now being reported outside China - the origin of the outbreak - with South Korea, Italy, Japan, and Iran emerging as new epicentres.
Investor sentiment took another hit when California's governor said 8,400 people were being monitored after travelling to China. Meanwhile, the US Centres for Disease Control and Prevention confirmed an infection in California in a person who reportedly did not have relevant travel history or exposure to another known patient.
The number of confirmed coronavirus cases outside of China has also jumped. In South Korea, more than 1,700 cases have been confirmed along with over 600 in Italy. The outbreak has the potential to become a pandemic and is at a decisive stage, the head of the World Health Organization said Thursday.
ECONOMIC NEWS: Japan Industrial Production Climbs 0.8% On Month In January- Japan industrial production climbed a seasonally adjusted 0.8% on month in January, the Ministry of Economy, Trade and Industry said in Friday's preliminary reading, following the 1.2% gain in December. On an annual basis, industrial production sank 2.5%. Upon the release of the data, the METI downgraded its assessment of industrial production, saying that it fluctuates indecisively but has weakened.
Shipments were up 0.2% on month and down 3.7% on year, while inventories rose 1.5% on month and 3.8% on year. The inventory ratio sank 1.5% on month but spiked 9.6% on year. According to the METI's forecast for industrial production, output is expected to climbed 5.3% on month in February but then sink 6.9% in March.
Japan Retail Sales Up 0.6% On Month In January- Japan total value of retail sales was up a seasonally adjusted 0.6% on month in January, the Ministry of Economy, Trade and Industry said on Friday, following the 0.2% gain in December. On a yearly basis, retail sales fell 0.4% following the 2.6% slide in the previous month.
Japan Unemployment Rate Climbs To 2.4% In January- Japan jobless rate came in at a seasonally adjusted 2.4% in January, the Ministry of Internal Affairs and Communications said on Friday, as compared to 2.2% from the previous month. The job-to-applicant ratio was 1.49, as against 1.57 from a month earlier.
CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, appreciated against a basket of currencies, amid growing concerns about the spread of the pneumonia-causing virus. The Japanese yen, considered a safe-haven asset, traded at 108.53 per dollar after seeing levels above 111.2 earlier in the trading week. US crude made a fresh one-year low of $48.17 per barrel in Asian trade, while gold rose 0.3% to $1,644.30 per ounce.
In Commodity news: Crude oil prices tumbled for a fifth day overnight to their lowest in more than a year over fears coronavirus could slow the global economy and erode demand for crude. Brent crude dropped $US1.25, or 2.3%, to settle at US$52.18 a barrel, off the session low of US$50.97 a barrel, the lowest since December 2018. West Texas Intermediate (WTI) futures sank US$1.64, or 3.4%, to US$47.09, after hitting their lowest since January 2019.
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