TOKYO (dpa-AFX) - The Japanese stock market is sharply lower on Friday and the safe-haven yen surged following the negative cues overnight from Wall Street amid lingering concerns about the economic impact of the coronavirus outbreak that has now spread worldwide. The rising number of coronavirus infections in the U.S. and Europe has dampened investor sentiment.
The benchmark Nikkei 225 Index is losing 514.42 points or 2.41 percent to 20,814.70, after touching a low of 20,807.48 earlier. Japanese stocks posted their biggest single-day percentage gain in a month on Thursday.
Market heavyweight SoftBank is lower by 3 percent and Fast Retailing is declining more than 1 percent. In the tech space, Advantest is losing more than 2 percent and Tokyo Electron is lower by almost 2 percent.
The major exporters are weak on a stronger yen. Canon is losing 3 percent, while Panasonic, Sony and Mitsubishi Electric are declining more than 2 percent each.
Among auto stocks, Honda Motor is down almost 3 percent and Toyota Motor is declining more than 2 percent. In the oil sector, Japan Petroleum is losing almost 3 percent and Inpex is lower by more than 2 percent after crude oil prices extended losses overnight.
Among the few major gainers, Seven & I Holdings is gaining more than 5 percent. According to reports, Seven & I has abandoned plans to acquire Marathon Petroleum's Speedway gas stations in the U.S. for $22 billion.
On the flip side, Kobe Steel and JFE Holdings are losing almost 6 percent, Casio Computer is lower by more than 5 percent. Nippon Light Metal and Fuji Electric are declining almost 5 percent each.
In economic news, the Ministry of Internal Affairs and Communications said that the average of household spending in Japan was down 3.9 percent on year in January - coming in at 287,173 yen. That was in line with expectations following the 4.8 percent decline in December.
In the currency market, the U.S. dollar is trading in the lower 106 yen-range on Friday. The yen surged to a nearly five-month high of 106.23 overnight.
On Wall Street, stocks closed sharply lower on Thursday amid lingering concerns about the economic impact of the coronavirus outbreak that has now spread worldwide, as confirmed cases reach more than 95,000 globally. Coronavirus infections in South Korea have jumped to more than 6,000. Switzerland has reported its first death from the virus, while the number of cases in Germany rose by 87 to 349. California declared a state of emergency after a coronavirus-related death in the state, where there are at least 53 confirmed cases.
The Dow plunged 969.58 points or 3.6 percent to 26,121.28, the Nasdaq tumbled 279.49 points or 3.1 percent to 8,738.60 and the S&P 500 plummeted 106.18 points or 3.4 percent to 3,023.94.
The major European markets also showed significant moves to the downside on Thursday. While the French CAC 40 Index tumbled by 1.9 percent, the U.K.'s FTSE 100 Index and the German DAX Index slumped by 1.6 percent and 1.5 percent, respectively.
Crude oil prices declined sharply on Thursday amid reports the OPEC has recommended an extension of current output cuts and reduce output by another 1.5 million barrels a day for the second quarter. WTI crude oil futures for April ended down $0.88, or nearly 2 percent, at $45.90 a barrel.
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