Tokyo Stock Exchange declines due to Chinese epidemic

  •   27/01/2020 - 14h20
  •   Adeline HARMANT

The Tokyo Stock Exchange is currently experiencing a collapse following the Chinese Coronavirus epidemic. Let's discover together the extent of the damage and some additional information about this event.

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Tokyo Stock Exchange declines due to Chinese epidemic
Image copyright: Dick Thomas Johnson - Flickr

Session in the red this Monday in Tokyo:

The Tokyo Stock Exchange was therefore in the red during the first session of the week, due to fears of an extension of the coronavirus epidemic currently affecting China and of which Japan already has a few victims.

At the time of closing, the Nikkei 225 index thus showed a decline of around 483.67 points, i.e. a fall of 2.03%, with a quotation at 23,343.51 points, while the Topix index lost 1.61% and fell to 1,702.57 points.

 

The causes of this sudden drop:

It is, of course, following the extension of travel restrictions in China in order to curb the coronavirus epidemic that several countries, including Japan, are preparing the evacuation of their nationals from the quarantine zones in that country. It should be noted that organised trips to China were suspended this morning by the Chinese Government, which risks penalising world tourism and particularly that of Asia in general and therefore Japan.

The sectors of activity that suffer most from this decision are of course those of tourism and aviation, but also other sectors such as cosmetics and Japanese fashion, which depend heavily on Chinese tourism.

At the same time, fears about the virus have also contributed to the rise of the Yen, which is considered a safe haven, and this rise is also weighing on Japanese export groups in all sectors of activity.

 

Values to follow in the Japanese market today:

As for the sectors of activity of the Japanese stock market, all are in the red on Monday except for real estate. Among the most impacted stocks of the day were the following actions:

Fast Retailing and Shiseido, who depend heavily on China and are the two biggest losers in this session. Fast Retailing lost 5.66% to 58,460 yen and Shiseido fell 5.49% to 7,060 yen.

On the airline side, there are also assets in the red with a significant and of course predictable drop in bookings due to the epidemic and travel restrictions imposed by the Beijing government. Among the stocks most affected were ANA Holding, which lost 3.01% with a listing at 3,441 yes, and Japan Airlines, which lost 3.89% at 3,134 yen. Finally, it should be noted that the share of the tour operator HIS fell by 6.76% to 2,548 yen.