Japan Stocks fall 0.7%

Headline indices of the Japan share market were mixed on Tuesday, 03 March 2020, after trimming earlier gains as ongoing fears about the economic impact of the continued spread of the coronavirus unsettled investors. Around late afternoon, the 225-issue Nikkei Stock Average declined 142.70 points, or 0.67%, to 21,201.38, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange shed 11.56 points, or 0.76%, at 1,514.31.

All industry categories of Topix index lost ground, with Securities & Commodities Futures, Warehousing & Harbor Transportation Services, Real Es Fishery, Agriculture & Forestry, Machinery, Rubber Products, and Retail Trade issues being notable losers.

 

The magnitude of the COVID-19 outbreak and its effect on the economy and supply chains remain the biggest questions for investors. The global death toll from COVID-19 has passed 3,000, and South Korea said Monday it had confirmed 599 new cases, far higher than the daily tally reported in China. Italy now has more than 1,600 confirmed cases, while Iran surpassed 1,500, with 66 deaths. Meanwhile, health officials in Washington state on Monday said there have been four more deaths from the outbreak, bringing the total to six.

The Paris-based Organization for Economic Cooperation and Development on Monday forecast that the global economy would grow by 2.4% in its best case scenario, compared with 2.9% expansion projected before the viral outbreak. The OECD urged governments to act swiftly and forcefully to boost the world economy. Finance ministers from the Group of Seven economies were scheduled to hold a call Tuesday to discuss potential responses to the virus, according to reports.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, appreciated against a basket of currencies. The Japanese yen strengthened to 108.07 per dollar after an earlier low of 108.53.

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