Key Nikkei index down 3% in early trade over coronavirus fears

Tokyo's key Nikkei index dropped three percent in early trade on Tuesday following a blistering sell-off on Wall Street sparked by a crash in oil prices and fears over the coronavirus.

The benchmark Nikkei 225 index slipped after the opening bell, trading down 3.08 percent or 607.17 points at 19,091.59 about 10 minutes after trade began.

The broader Topix was down 2.85 percent or 39.53 points at 1,349.44.

"Japanese shares are seen falling sharply in reaction to the rout in the US market, and the Nikkei 225 may dip below the 19,000 level," Toshiyuki Kanayama, senior market analyst at Monex, said in a commentary.

The dollar fetched 102.89 yen in early Asian trade, against 102.42 yen in New York.

In Tokyo, shares were lower across the board, with Sony dropping 2.99 percent to 6,028 yen, game giant Nintendo trading down 3.95 percent to 34,510 yen, and the Uniqlo casual wear operator Fast Retailing off 3.52 percent at 51,250 yen.

Among banks, Sumitomo Mitsui Financial was down 4.19 percent at 2,798.5 yen and Mitsubishi UFJ Financial was lower by 3.58 percent at 416.9 yen.