Japan shares fall as China stocks tumble on coronavirus fears

By Stanley White
TOKYO, Feb 3 (Reuters) - Japanese shares fell on Monday,
tracking the sharp sell-off in Chinese shares on their first
trading day after the Lunar New Year break, as worries mounted
about the economic fallout due to the coronavirus outbreak in
China.
The Nikkei index .N225 declined 1.10% to 22,956.66 by 0133
GMT, with consumer discretionary and information technology
sectors leading declines. The benchmark fell as much as 1.8%, a
10-week low.
Chinese markets .CSI300 , which were closed since the end
of trade on Jan. 23, reopened on Monday with a decline of 8.06%.
The total number of deaths from the virus jumped to 361 as
of Sunday, the country's health authority said on Monday, as
several nations suspended flights, evacuated their own citizens
and closed borders to Chinese nationals. Economists have already warned the outbreak will weigh on
consumer spending, tourism, and factory activity in the world's
second-largest economy, which could weigh on Japan too, as China
is one of the country's top export markets.
Meanwhile, Japan's manufacturing activity shrank for a ninth
month in January as output and new orders contracted again,
pointing to further strains on the economy, a business survey
showed. There were 27 advancers on the Nikkei index against 196
decliners.
The largest percentage loser on the index was department
store operator Isetan Mitsukoshi Holdings Ltd 3099.T , down
5.81%. The company lowered its profit forecasts on Friday after
market hours, partly reflecting an expected decline in Chinese
tourism to Japan.
The second-biggest decliner was auto parts and metals
supplier Toyota Tsusho Corp 8015.T losing 5.74%, followed by
Nippon Sheet Glass Co Ltd 5202.T down by 5.48%.
The largest percentage gainers on the index were processed
food and healthcare company Ajinomoto Co Inc 2802.T up 7.09%,
followed by building materials maker TOTO Ltd 5332.T gaining
3.98%, and industrial printing and electronic parts company
Seiko Epson Corp 6724.T up by 3.21%.
The broader Topix index .TOPX fell 0.71% to 1,672.46.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.54 billion, compared with the average
of 1.09 billion in the past 30 days.