Japan shares slide for fourth day as pandemic fears grow

By Hideyuki Sano
TOKYO, Feb 27 (Reuters) - Japan's benchmark Nikkei fell for
a fourth day on Thursday, as investors were spooked by the rapid
expansion of the global coronavirus outbreak, with the United
States reporting its first possible community spread.
The Nikkei share average .N225 tumbled 2.13% to a
4-1/2-month low of 21,948.23, finishing below a major support of
its 200-day moving average, at 22,195, for the first time since
early September.
Analysts say the Nikkei could be supported at around 20,500,
where it will be traded on par with its book value.
The broader Topix .TOPX lost 2.37% to 1,568.06, the lowest
finish since Sept. 10, with trading volume topping three days in
a row, the first time in more than a year.
Investors are increasingly worried that the virus, which has
already caused massive economic disruption in China, is becoming
a pandemic.
The U.S. Centers for Disease Control and Prevention
confirmed an infection of the new coronavirus in California in
someone who had not travelled outside the United States or been
exposed to a person known to have the virus.
"The coronavirus is no longer an Asian issue. It has now
reached five continents. People initially thought the
January-March earnings will be hit but it will be over in
April-June. That now is being called into question," said Hozumi
Takuya, global investment strategist at Mitsubishi UFJ Morgan
Stanley Securities.
As investors' concerns grow, the Nikkei volatility index
.JNIV , a gauge of investors' expectations on future market
fluctuations, short up to 31.40, the highest since December
2018.
In a sign of broad selling, all of the Tokyo Stock
Exchange's 33 industry subindexes fell, led by a 4.9% drop in
the air transport index .IAIRL.T .
ANA Holdings 9202.T fell 5.3%, while Japan Airlines
9201.T lost 4.5%, both hitting multi-year lows.
Brokerage shares .ISECU.T , highly sensitive to economic
cycles, followed with a decline of 4.3%, with Nomura Holdings
8604.T down 4.3% and Daiwa Securities Group 8601.T losing
4.9%.
The index of Mothers start-up shares .MTHR dropped 4.3% to
a four-year low.
On the other hand, food delivery services firms were one of
the few bright spots, with Fundely 3137.T gaining 2.5%.
Kyorin Holdings 4569.T surged 10.7% following a report
that its subsidiary has developed a coronavirus test kit that
can cut test time to less than 30 minutes from current 6 hours.

(Editing by Jacqueline Wong)