Business & Economy

Japan stocks tumble to 3-year low as coronavirus fears grow

Tokyo, Mar 12 (efe-epa).- The Tokyo Stock Exchange’s benchmark Nikkei index closed on Thursday at a three-year low of 18,559, down 4.4 percent from the previous day, as fears mount over the coronavirus spread that has disrupted the world economy.

The Nikkei dropped 856.43 units at the end of the day’s trading while the broader Topix index, which tracks the companies with largest market capitalization, fell 57.24 points, some 4.13 percent and stood at 1,327.88 units.

Nikkei opened the day’s trading with a drop of more than two percent following the Wall Street’s plunge a day earlier as the World Health Organization declared the COVID-19 outbreak pandemic.

The Japanese stocks tumbled more after United States President Donald Trump announced a travel ban from Europe to curb the spread of the disease that has gripped the world.

The Tokyo Stock Exchange gave in to the fresh wave of significant negative impacts on the global economy and sunk to its lowest in two years and 11 months.

Several investors were disappointed by Trump’s travel ban amid hopes for some stimulus measures to fight the effects of the outbreak, according to Japanese experts.

The Nikkei recovered a little towards the end of the session as Japan’s Prime Minister Shinzo Abe met Bank of Japan Governor Haruhiko Kuroda to discuss possible measures in the face of continuing disruptions in the financial and foreign exchange markets.

The government and the central bank won’t hesitate in taking appropriate measures when they are necessary to deal with the impact of coronavirus on the economy, Kuroda said.

He was talking to reporters after his meeting with Abe during which they discussed, among other issues, the appreciation of yen against the US dollar, a trend detrimental to muscle. Japanese exporter.

At the bourse, Stocks of tech giant Softbank dived 6.26 percent. Fast Retailing, the owner of the clothing chain Uniqlo, also recorded a dip of 5.6 percent while Toyota Motor dived 3.45 percent.

In the First Section, which includes the largest companies, 2,118 stocks declined while 39 rose and 54 closed the session unchanged.

Total trade volume rose to 3.78 trillion yen as compared to the 3.12 trillion yen on Wednesday. EFE


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