Asia report: Markets sharply lower as coronavirus concerns weigh

In Japan, the Nikkei 225 was down 0.98% at 23,795.44, as the yen strengthened 0.24% against the dollar to last trade at JPY 109.58.

Of the major components on the benchmark index, automation specialist Fanuc was down 0.82%, Uniqlo owner Fast Retailing lost 1.58%, and technology conglomerate SoftBank Group was 2.35% lower.

The broader Topix index was also in the red by the end of Tokyo trading, closing down 0.78% at 1,730.50.

Fresh data out of the country on Thursday showed a larger-than-expected fall in exports in December, with the numbers dropping 6.3% year-on-year, according to the Ministry of Finance.

That was significantly worse than the 4.2% decrease economists polled by Reuters had expected.

On the mainland, the Shanghai Composite slid 2.75% to 2,976.53, and the smaller, technology-heavy Shenzhen Composite dropped 3.45% to 1,756.82.

South Korea’s Kospi was 0.93% weaker at 2,246.13, while the Hang Seng Index in Hong Kong was off 1.52% at 27,909.12.

Both of the blue-chip technology stocks were weaker in Seoul, with Samsung Electronics down 2.41%, and chipmaker SK Hynix 2.28% weaker.

The pneumonia-causing strain of coronavirus that has emerged out of the Chinese city of Wuhan was very much weighing on sentiment on Thursday, as officials there suspended all public transport - including flights - in a bid to control the spread of the disease.

Hundreds are understood to have been affected and the number of deaths is now in the double digits, with cases confirmed in a number of Asian countries, and one in the United States.

Authorities in China are keen to quash the spread of the virus - a tough ask at the Lunar New Year, when around 400 million people travel to their home provinces for the celebrations.

“Asia has been sharply weaker overnight as fears over the coronavirus weigh on investors,” said Neil Wilson, chief market analyst at Markets.com.

“Wuhan is in lock down - about time too, but coming as it does at the start of the New Year holiday, it’s a big problem for the authorities.

“Markets seemed to largely shrug this off yesterday but as I said in Monday’s note, it’ll get worse before it is sorted.”

Oil prices were lower as the region went to bed, with Brent crude last down 1.3% at $62.40 per barrel, and West Texas Intermediate off 1.56% at $55.87.

In Australia, the S&P/ASX 200 was down 0.63% at 7,088.00, even as the latest jobs data out of the sunburnt country rocketed beyond expectations.

A total of 28,900 jobs were added in the country in December on a seasonally-adjusted basis, well exceeding the 15,000 figure those polled by Reuters were looking for.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 went against the regional trend, eking out gains of 0.1% to close at 11,901.11.

Wellington’s rise was led by Vista Group, which rose 2%, while retirement property developer Summerset Group was 1.5% firmer to close at an all-time high.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.38% at AUD 1.4555, and the Kiwi managing gains of 0.01% to NZD 1.5165.