Nikkei falls amid lockdown fears, sees worst quarter since late 2008

SYDNEY, March 31 (Reuters) - Japanese stock benchmark Nikkei
dropped on Tuesday on growing fears that Tokyo could go into its
first-ever lockdown as the global coronavirus crisis showed no
signs of abating.
The Nikkei average .N225 fell 0.9% to 18,917.01, well
below 19,500, the average cost of the Bank of Japan's massive
stock purchase since 2013. The index was down 10.5% for the month, its biggest monthly
decline since May 2010, and down 20.0% year-to-date, its worst
quarter since late 2008. The Nikkei's volatility index .JNIV , a measure of
investors' volatility expectations based on option pricing and
considered to be a fear gauge, slid 11.4% to 49.41, moving away
from a nine-year peak of 60.86, hit on March 16.
Market sentiment got some relief in the morning from Chinese
factory activity data, which unexpectedly expanded in March
after contracting sharply to a record low in February.
But the momentum didn't last long.
Analysts said some speculators sold stock futures in the
afternoon, assuming the Bank of Japan would refrain from buying
stocks on Tuesday.
However, many institutional investors were reluctant to take
new positions on the last day of the fiscal year, and also as
they were unsure if and when Japan would declare a national
emergency and implement lockdown measures.
The broader Topix .TOPX declined 2.3% to 1,403.04, with
all but two of the 33 sector sub-indexes on the Tokyo Stock
Exchange finishing in negative territory.
Among bluechip stocks, Toyota Motor Co Ltd 7203.T lost
4.4%, Mitsubishi UFJ Financial Group Inc 8306.T shed 5.4%, and
NTT Docomo Inc 9437.T fell 2.8%.
As Tokyo was seen moving closer toward a potential citywide
lockdown over the coronavirus pandemic, shares of remote
work-related firms bucked the overall market weakness.
Web/TV conferencing services provider V-cube Inc 3681.T
surged 10.0%, while groupware maker Cybozu Inc 4776.T soared
9.2%.
Fujifilm Holdings Corp 4901.T advanced 2.2% after domestic
media reported the company planned to increase production of its
Avigan anti-flu drug, also known as favipiravir. Fujifilm's stocks climbed 6.0% on Monday after Prime
Minister Shinzo Abe said the government would push for approval
of the drug as a potential coronavirus treatment. .T
Elsewhere, JSR Corp 4185.T jumped 8.0% as U.S. activist
ValueAct Capital said it has acquired over 16.5 million shares,
more than a 7% stake, of the Japanese chip and display materials
maker.