Tokyo stocks open lower on virus worries, strong yen

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Tokyo, March 2 (AFP/APP): Tokyo stocks opened lower on Monday after plunges last week on lingering worries over the spread of the new coronavirus, with the yen firming against the dollar.

The benchmark Nikkei 225 index slipped 1.09 percent or 230.80 points to 20,912.16 in early trade, while the broader Topix index was down 1.26 percent or 18.99 points at 1,491.88.

Investors are “watching the number of patients short-term, while governments of relevant countries are readying measures” including economic stimulus, Yukino Yamada, senior strategist at Daiwa Securities, said in a commentary.

“In the Tokyo market, concerns are emerging that shares have oversold,” she said, adding that the steady rebound in the market “will be when the number of patients in the world peaks”.

The dollar slipped to 107.70 yen in early Asian trade against 108.06 yen in New York on Friday as investors sought safe haven assets including the Japanese currency.

In a rare statement, the Bank of Japan said the central bank “will strive to provide ample liquidity and ensure stability in financial markets” to divert risks linked to instability in the global financial and capital markets caused by the spread of the novel coronavirus.

In Tokyo, some blue-chip exporters were lower, with Toyota dropping 1.79 percent to 6,999 yen, Honda trading down 2.41 percent at 2,732 yen, and Panasonic down 1,01 percent at 1,020 yen.

But Sony was up 1.37 percent at 6,702 yen and chip-testing equipment maker Advantest was up 1.93 percent at 5,010 yen as some investors bought on dips after five consecutive days of rout in Tokyo.

On Wall Street, the Dow ended down 1.4 percent at 25,409.36.

Dow slumps again to finish worst week since October 2008

 

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