Nikkei rises on optimism Olympics likely to only be postponed

Sydney, March 23 (Reuters) - Japan's share benchmark Nikkei
edged up on Monday on optimism the Tokyo Olympic Games will not
be cancelled after the International Olympic Committee (IOC)
said it was stepping up "scenario planning", including possibly
postponing the event.
The relief over the Olymics helped Japanese shares buck the
global trend. Markets in the region plummeted on recession fears
on Monday as more countries around the world adopted draconian
measures over the weekend to contain the spreading coronavirus.
Hopes of the Bank of Japan buying Exchanged Traded Funds
(ETFs) more aggressively also continued to lend support to the
market.
The Nikkei average .N225 gained 0.5% to 16,633.46 by the
midday break, not far though from a 3-1/2-year low of 16,378.94
touched last Tuesday. Earlier in the session, the index rose as
much as 1.7%.
But overall sentiment remained fragile as U.S. stock futures
and Asian shares sank as a rising tide of national lockdowns
threatened to overwhelm policymakers' frantic efforts to cushion
what is likely to be a deep global recession. MKTS/GLOB
The Nikkei's volatility index .JNIV , a measure of
investors' volatility expectations based on option pricing and
considered to be a fear gauge, dropped 2.8% to 56.79, but was
not too far from a nine-year peak of 60.86 hit last week.
The IOC said on Sunday that it would hold discussions,
including an option of putting back the July 24 start date or
even moving the Tokyo Games by a year or more, but said
cancelling the event would not solve problems or help anybody.
Japanese Prime Minister Shinzo Abe said for the first time
on Monday that the Games may need to be postponed if the event
cannot be held in its "complete form" due to the pandemic.
Ad firm Dentsu Group Inc 4324.T advanced 3.9% on relief
after the IOC suggested it was looking to delay but not cancel
the Games. Shares of Dentsu, which is Japan's main marketing
agency for the event, had lost almost half of their value
year-to-date on worries that the event could be cancelled.
The broader Topix .TOPX fell 1.0% to 1,270.39 by the
midday recess, with more than two-thirds of the 33 sector
sub-indexes on the Tokyo Stock Exchange in negative territory.
Air transport .IAIRL.T lost 5.2% to become the worst
performing sector, with ANA Holdings Inc 9202.T diving 7.5%,
on the back of evaporating demand amid the global coronavirus
outbreak.