Asia report: Nikkei slips on Ebola concerns

Although wider attention was focusing on the missing AirAsia flight, Asian stock markets were largely in positive territory overnight.

The Shanghai Stock Exchange composite index was up 0.33% after reports of possible new relaxed banking rules.

New regulations from China's central bank reported on Sunday by Xinhua News would in effect see a relaxation of the rules for the calculation of banks' deposits while at the same time waiving some reserve requirements.

In Japan, prime minister Shinzo Abe's government unveiled new economic stimulus measures worth 3.5trn yen over the weekend.

However, concern the Ebola virus had made its way to the country's shores shook markets. That led Tokyo to lose some of the gains made on Friday and in the early part of the session.

The Nikkei index was down 89.12 points, or 0.5%, by the close after the Ministry of Health, Labour and Welfare said confirmed that a Japanese man recently returned from Sierra Leone was taken to a specialist medical centre on Monday after developing a fever.

“Investor sentiment was dampened by the Ebola news as a possible infection could reduce consumption during the holidays” as people will refrain from going out, said Yoshihiko Tabei, chief analyst at Naito Securities, according to Asia Nikkei Review.

Investors also moved to close long positions ahead of the New Year’s holidays that begin on Wednesday.