Nikkei eases on virus concerns, weak corporate earnings

TOKYO, Feb 10 (Reuters) - Japanese shares slipped on Monday,
as fears about the severity of the coronavirus outbreak in China
and weak earning results outweighed any boost from a strong U.S.
employment data.
As of 0215 GMT, the Nikkei share average .N225 fell 0.2%
to 23,779.81 while the broader Topix .TOPX lost 0.38% to
1,725.52.
The death toll from the coronavirus rose again over the
weekend, passing the total killed by the SARS epidemic. It now
stands at 908 in mainland China, where there are a total of
40,171 infections.
"We can't see signs that the epidemic is easing as yet. The
damages to supply chains are also not clear," said Nobuhiko
Kuramochi, chief strategist at Mizuho Securities.
"We need to see whether the epidemic will peak out this
month or it could take a bit longer."
Worries about the disease dampened any boost from strong
U.S. jobs report on Friday. Non-farm payrolls increased 225,000
in January, far above expectations of 160,000. Earning results from some Japanese firms also highlighted
tough business conditions they faced.
Nippon Steel 5401.T fell as much as 3.7% before recouping
losses after the steelmaker booked a record loss of 440 billion
yen ($4 billion) this financial year as it announced closing
three blast furnaces to deal with waning domestic demand.
While the losses were unexpectedly big, some market players
took its efforts for business restructuring as positive in the
long-term.
Unicharm 8113.T dipped 1% after the manufacturer of
diapers cut its earnings outlook on weak demand in China.
Camera maker Nikon 7731.T dropped 4.3% following its weak
earnings due to shrinking demand for digital camera.
Meanwhile, Honda Motor 7267.T gained 3.3% after Japan's
third-biggest carmaker raised its forecast for full-year
operating profit by 6% on Friday due to a weaker yen.
Its top executive said the company has not suffered from
major supply chain disruptions in coronavirus-hit China.