TOKYO, March 3 ― Tokyo stocks lost early gains and closed lower today as investors grew sceptical about the outcome of a G7 financial chiefs meeting on measures against the spread of the coronavirus.
The benchmark Nikkei 225 index fell 1.22 per cent, or 261.35 points, to 21,082.73, while the broader Topix index was down 1.36 per cent, or 20.75 points, at 1,505.12.
Tokyo shares had opened higher as worries over the spread of the virus receded with G7 financial and central bank chiefs set to hold talks on the issue.
But they gradually lost ground and closed in negative territory “following news reports that the G7 meeting may not produce practical measures”, said Daiwa Securities chief technical analyst Eiji Kinouchi.
“But selling pressure was not so strong as downside support appeared solid,” Kinouchi told AFP.
Finance ministers and central bank chiefs from G7 countries will hold talks today with global uncertainty rising over the coronavirus epidemic, the US Treasury said yesterday.
Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell “will lead a call with their G7 counterparts tomorrow morning”, the department confirmed in a statement.
Top finance officials in Europe separately tried to calm fears about a damaging economic downturn as a result of the epidemic, as did the continent's central bank.
A strong yen also discouraged Japanese investors from buying shares, especially exporters, brokers said.
The dollar fell to ¥107.79 (RM4.20) in Asian afternoon trade from ¥108.25 in New York late yesterday.
In Tokyo, major exporters were lower. Toyota lost 1.53 per cent to ¥7,044 with Nissan down 3.77 per cent at ¥443.1.
Honda fell 1.19 per cent to ¥2,763 following a report that it will reduce production in its two domestic plants for several days on concerns over the supply of parts from China.
Sony fell 0.98 per cent to ¥6,805 with Nintendo down 0.78 per cent at ¥36,800. ― Reuters
