Japan shares rebound in volatile session on short-covering

SYDNEY, March 10 (Reuters) - Japanese stocks settled higher
on Tuesday after a volatile session that saw shares fall on
worries over the economic impact of the coronavirus epidemic and
an oil price crash before short-covering lifted markets.
The Nikkei average .N225 finished 0.9% higher at
19,867.12, having earlier fallen to a three-year low of
18,891.77. It moved as much as 1,078.23 points in intraday
trade, marking its largest daily swing since February 2018.
Traders said short-covering was behind the rally, following
Monday's 5.1% plunge amid a global equity rout.
The broader Topix .TOPX rose 1.3% to 1,406.68, also
bouncing back from earlier steep losses.
All but three of the 33 sector sub-indexes on the Tokyo
Stock Exchange ended higher, with securities .ISECU.T , real
estate .IRLTY.T and warehouse and wharf .IWHSE.T being the
top three performing sectors.
On the currency front, the safe-haven yen JPY= tumbled
more than 2% versus the dollar, after U.S. President Donald
Trump pledged to take "major" steps to protect the economy and
floated the idea of a payroll tax cut with congressional
Republicans. This provided a tailwind for Tokyo-listed bluechip exporters
broadly as a weaker local currency boosts corporate profits when
they are repatriated.
Sony Corp 6758.T climbed 3.3%, Mazda Motor Corp 7261.T
rose 3.7% and Tokyo Electron Ltd 8035.T advanced 3.9%.
Capping the gains in Japanese shares were concerns about the
impact of the virus outbreak on global economic growth and lower
oil prices.
The virus has spread to more than 100 nations and infected
over 114,000 people globally, with Italy ordering everyone
across the country not to move around other than for work and
emergencies, while banning all public gatherings. Also weighing on investor sentiment were downside risks to
oil prices. Oil futures stabilised in Asia on Tuesday, after
falling to their lowest since 1991 on Monday. O/R
Japan's largest oil and gas exploration and production firm,
Inpex Corp 1605.T , tumbled 4.3%.
Ricoh Co Ltd 7752.T jumped 7.0% after the company
announced a plan to sell a partial stake in Ricoh Leasing Co Ltd
8566.T to Mizuho Leasing Co Ltd 8425.T in late-April, while
Ricoh Leasing lost 4.6% and Mizuho Leasing added 1.0%.