Nikkei Index Drops Weighed by Coronavirus Concerns

Japanese stocks fell, affected by a widespread sell-off in global stocks Thursday, September 24th, after concerns about their high valuation and an increase in virus cases.

The pressure on stocks was increased by uncertainty over the US presidential election, as President Donald Trump declined to comment on a peaceful transfer of power if he lost in the November 3 election.

The benchmark Nikkei index fell 1.11% to 23087.82 points, to fall from a key support level for its 25-day average at 23,217 points, and to record its lowest closing level within two weeks.

The broader TOPIX index fell 1.08% to 1626.44 points, with cyclical stocks such as steelmakers and automobiles hardest hit.

Nippon Steel fell 4.1%, while rival JFE Holdings tumbled 6.1%. Among the auto stocks, Honda shares fell 4.2%, while Subaru fell 3%.

In other sectors, Sumitomo Mitsui Trust fell 3.1% due to fears of reputational damage after the company made mistakes in counting votes in its shareholder meetings.

Hitachi Transport System fell 4.7%, while SG Holdings fell 1.3% after a media report indicated that the two companies canceled their capital alliance.

Among the gainers, Olympus increased 1.2%, Hoya Corp for optical products rose 1.5%, and Sysmex Medical Equipment rose 0.4%.