Nikkei dives to 14-month trough on virus fears, oil plunge

SYDNEY, March 9 (Reuters) - Japan's Nikkei share benchmark
tumbled to 14-month lows on Monday, on rising fears that the
widening reach of the coronavirus epidemic could severely
disrupt the global economy.
The Nikkei average .N225 shed 5.1% to 19,473.07, its
lowest closing level since Jan. 4, 2019. It marked the biggest
one-day fall since June 24, 2016.
"The markets have moved into a new phase," traders said,
referring to recent developments, including multiple state of
emergency declarations in the United States in response to the
coronavirus outbreak and an oil price plunge.
The number of people infected with coronavirus topped
110,000 across the world and more than 3,800 have died, as the
outbreak reaches more countries and causes wider economic
damage. The broader Topix .TOPX slid 5.6% to 1,388.97, its lowest
closing since Nov. 11, 2016.
All of the 33 sector sub-indexes on the Tokyo Stock Exchange
were trading lower, with mining .IMING.T , banking .IBNKS.T
and securities .ISECU.T becoming the worst three performers.
Oil refiners and trading houses were pummelled by big falls
in oil prices as Saudi Arabia plans to raise its crude oil
production significantly following the collapse of OPEC's supply
cut agreement with Russia. Major oil refiners JXTG Holdings Inc 5020.T and Idemitsu
Kosan Co Ltd 5019.T sank 8.2% and 6.6%, respectively, while
Mitsui & Co 8031.T and Itochu Corp 8001.T dropped 6.9% and
5.6%, in that order.
As the yield on 10-year U.S. Treasuries US10YT=RR plunged
to a once-unthinkable level below 0.5%, bank stocks were hit
hard - as falling yields will have negative impact on their
profits.
Mitsubishi UFJ Financial Group Inc 8306.T dived 11.3% and
Mizuho Financial Group Inc 8411.T slumped 13.1%.
On the currency front, the safe-haven yen JPY= jumped more
than 3% to a day high of 101.55 per dollar, its strongest since
Nov. 9, 2016.
It created a headwind for exporters, including
semi-conductor related shares that had been helped by hopes of
demand related to new technologies such as 5G, with Yaskawa
Electric 6506.T and Murata Manufacturing 6981.T diving 9.2%
and 7.0%, respectively.