Tokyo's Nikkei closes down more than 4% on growing coronavirus concern

Tokyo's benchmark Nikkei index dropped more than four percent on Wednesday amid a broader market rout over the coronavirus outbreak, with fears growing of a possible lockdown in the capital.

The Nikkei 225 index lost 4.50 percent, or 851.60 points, to close at 18,065.41 while the broader Topix index dropped 3.70 percent, or 51.96 points, to 1,351.08.

Follow latest updates on the COVID-19 pandemic here

Tokyo shares opened lower after the Dow Jones Industrial Average dropped almost two percent, reflecting the economic hit from unprecedented government actions to shut down activity.

The blue-chip index lost more than 23 percent for the quarter, its worst since 1987, as the US shut down major parts of its economy in response to the coronavirus outbreak.

Market sentiment in Tokyo also suffered from a key survey released early Wednesday showing confidence among Japan's biggest manufacturers had plunged into negative territory for the first time in seven years, as the coronavirus pandemic hits demand and disrupts production.

The Bank of Japan's March Tankan business survey -- a quarterly poll of about 10,000 companies -- showed a reading of minus 8 among major manufacturers, the first negative reading since March 2013.

The market faced additional selling pressure in late trade after US stock index futures dropped while investors remained nervous about a possible Tokyo lockdown, brokers said.

"If a lockdown is announced, it's going to have a considerable impact on the market," Shinichi Yamamoto, a broker at Okasan Securities in Tokyo, told AFP.