Japan shares claw back coronavirus-related losses, investors await earnings

By Tomo Uetake
TOKYO, Jan 22 (Reuters) - Japanese shares staged a modest
rebound on Wednesday, as earlier investor panic about the
coronavirus in China abated, although hygeine-related firms
remained in demand and pressure on the tourism sector persisted.
The Nikkei share average .N225 rose 0.7% to 24,031.35 to
claw back most of its 0.9% losses from the previous session,
while the broader Topix .TOPX added 0.5% to 1,744.13.
The virus, which causes a type of pneumonia, has spread to
more Chinese cities including Beijing and Shanghai as the number
of patients in China more than tripled. More cases were are
reported outside China, including the United States.
Support for hygiene-related stocks remained strong. Azearth
3161.T , a supplier of protective attire, soared 23.9%, one day
after it climbed to its daily limit while fibre-maker Omikenshi
3111.T jumped 9,9%, also after rising to its daily limit
previous day.
Daikin Industries 6367.T , which produces air conditioning
products, climbed 2.3%.
On the flip side, inbound visitor-related stocks remained
under pressure.
Isetan Mitsukoshi Holdings 3099.T dropped 1.0% and while
Bic Camera Inc 3048.T sagged 0.9% each, due to worries that
the number of Chinese tourists to Japan could decrease.
Rising Chinese .SSEC and Hong Kong stocks .HSI improved
the investor sentiment and contributed to firmer Tokyo market as
China's response to a virus outbreak tempered some fears of a
global pandemic, traders said.
"The market was due for a mild correction at this level
anyway and speculators used China's coronavirus outbreak was as
an excuse to sell," said Yasuo Sakuma, chief investment officer
at Libra Investments. The Nikkei climbed to a 15-month high on
Friday.
He said institutional investors have largely been taking a
wait-and-see stance ahead the Japanese corporate earnings season
for the December quarter.
Nidec Corp 6594.T and Disco Corp 6146.T are due to
announce their financial results on Thursday.
Elsewhere, Mitsubishi Motors 7211.T slumped 4.2% after the
German prosecutor's office said it is probing the carmaker for
suspected use of illegal defeat devices installed in its diesel
engines.