TOKYO, Feb 25 ― Tokyo shares dropped more than 3.3 per cent today, tracking falls on global markets as fears mount that the new coronavirus outbreak will derail economic growth.

The benchmark Nikkei 225 index sank 3.34 per cent, or 781.33 points, to close at 22,605.41, while the broader Topix index was down 3.33 per cent, or 55.74 points, at 1,618.26.

Tokyo shares opened sharply lower across the board after Wall Street stocks finished with steep losses yesterday over the virus.

Selling pressure remained strong throughout the day's trading in the Tokyo market, which was closed yesterday for a national holiday.

"The loss in New York weighed heavily on buying sentiment here,” said Yoshihiro Okumura, general manager at Chibagin Asset Management.

Japan's geographical proximity to and its economic ties with China fuelled worries over the virus's impact on the world's third-largest economy, Okumura said.

"Players are closely watching if US shares can rebound later today,” he told AFP.

The dollar fetched ¥110.80 (RM4.23) in Asian afternoon trade, against ¥110.71 in New York yesterday.

In Tokyo, major shares dropped sharply, with Sony losing 2.80 per cent to ¥7,269 and Panasonic falling 4.81 per cent to ¥1,137.5.

Toyota lost 3.35 per cent at ¥7,574 with Honda off 3.42 per cent at ¥2,935 and Nissan down 4.50 per cent at ¥481.4. ― AFP