Japanese shares erase gains on lingering worries about virus

* Tracking the coronavirus: https://tmsnrt.rs/3aIRuz7

* Hopes rising for coordinated economic stimulus measures

* Investors speculate BOJ will buy more ETFs

* Coronavirus outbreak has hurt risk assets

By Stanley White

TOKYO, March 3 (Reuters) - A rally in Japanese shares faded

on Tuesday as lingering worries about the domestic spread of the

coronavirus overcame hopes that global central banks would

coordinate to ease the economic impact of the epidemic.

The Nikkei index was up 0.02% at 21,348.15 at 0222 GMT.

Japanese shares opened more than 1% higher a day after the Bank

of Japan said it would take necessary steps to stabilise markets

and revealed it bought a record amount of exchange-traded funds

(ETFs) linked to Japanese shares. However, those gains gradually faded as traders curbed their

optimism. The World Health Organisation says Japan is now one of

four countries that it is most concerned about as it tracks the

spread of the virus. Infections in Japan have topped 200, with six deaths. That

excludes more than 700 cases and five more deaths from the

quarantined cruise liner.

There were 88 advancers on the Nikkei index against 130

decliners on Tuesday

The largest percentage gainer in the index was drug maker

Teijin Ltd 3401.T , up 3.7%, followed by Takeda Pharmaceutical

Co Ltd 4502.T gaining 2.2% and rival drugmaker Eisai Co Ltd

4523.T up by 2.1%.

Teijin gained after the Japanese Association for Infectious

Diseases said three coronavirus patients treated with a drug

made by the company showed signs of improvement.

The largest percentage losses in the index were media

broadcaster SKY Perfect JSAT Holdings Inc 9412.T , down 4%,

followed by car brake maker Nisshinbo Holdings Inc 3105.T

losing 3.41%, and metal processor DOWA Holdings Co Ltd 5714.T

down by 2.85%.

Some traders were on the sidelines before a Group of Seven

conference call expected on Tuesday to discuss measures to deal

with the economic impact of the coronavirus outbreak.

The coronavirus emerged in China late last year but has

since spread to 66 countries and killed more than 3,000 people.

The broader Topix index .TOPX fell 0.18% on Tuesday to

1,523.07.

The volume of shares traded on the Tokyo Stock Exchange's

main board .TOPX was 0.8 billion, compared to the average of

1.32 billion in the past 30 days.

Get The App

Join the millions of people who stay on top of global financial markets with Investing.com.

Download Now