Japan recovers from initial virus-related losses, issues still remain
Japanese shares made humble gains on Wednesday as investor panic about China’s coronavirus outbreak eased. While hygiene-related firms continued to be in demand, pressure persisted on the tourism sector.
The Nikkei share average rose 0.2% to 23,904.51 in mid-morning trade, partially clawing back losses from the previous session, while the broader Topix added 0.1% to 1,737.47.
The pneumonia-causing virus has been reported to have spread to more major Chinese cities including Beijing and Shanghai as the number of patients in the local area tripled. Even more cases were reported outside of China, including its neighboring countries and the United States.
Demand for hygiene-related stocks remained strong as protective attire supplier, Azearth skyrocketed up 14.4% while fibre-maker Omikenshi jumped 8.3%. Both managed to hit its daily limit the previous day.
Meanwhile, inbound tourism stocks remained under pressure.
Isetan Mitsukoshi Holdings dropped 1.3%, while Bic Camera Inc and Pan Pacific International Holdings sagged 0.7% each. These were due to worries that the number of Chinese tourists to Japan could decrease.