Nikkei down 1.68% on persistent concern about coronavirus

The Tokyo Stock Exchange fell 1.68% on Wednesday, its worst close since November 2016, after a hopeful session due to expectations about the US economic stimulus measures, which ended up being twisted in the last hour by the persistent concern about the new coronavirus.

The Nikkei benchmark index fell 284.98 points, that 1.68%, to 16,726.55 integers, its worst closing since November 9, 2016, when it stood at 16,251.54 integers due to the shock of Donald Trump's victory. in the race for the United States presidency and fear of his protectionist policies.

The Topix, which groups the firms in the first section, those with the largest capitalization, saved the day with an advance of 2.38 points, 0.19%, to 1,270.84 units, after a sharp cut in profits. The index was up more than 3% an hour before closing.

Tokyo parquet opened higher and the Nikkei climbed to 2.26% in the first half of the session, after investors welcomed the multimillion-dollar stimulus package announced by the United States Government to try to alleviate the impact on the economy of the worldwide spread of Covid-19.

The stimulus package from the US Administration and the measures announced by the main central banks of the world helped to lift the spirits of investors, who seemed to be able to keep the good pace and chain two days of rise.

But optimism disappeared from the Japanese square an hour before closing and investors staged a wave of sales that suddenly buried the Nikkei in negative territory.

The mining sector led the losses, followed by real estate and port storage and transportation.

Telecommunications group Softbank accumulated the highest volume of operations for the day and the biggest drop among the 225 companies listed on the Nikkei, with a 10.89% drop.

It was followed by the manufacturer of precision mechanical products IHI, with a drop of 7.76%.

On the flip side of the coin, conglomerate Fujifilm staged the Nikkei's biggest rise, at 15.42%, after a Chinese government study noted that its experimental flu medication Avigan is being effective in treating patients with the new coronavirus in clinical trials.

In the first section, 835 stocks advanced against 1,298 that fell, while 33 ended the session unchanged.

Trading volume totaled 4.11 trillion yen (34.898 billion euros) on Tuesday, after 4.37 trillion yen (37.099 billion euros) the day before.


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