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Nikkei 225 closes lower by 0.79% at 22,426.19

The Nikkei posts its lowest close since October last year

Nikkei 26-02

Asian stocks are mostly following Wall Street’s lead lower today but the losses have been managed by the calmer mood in Chinese equities and US futures so far on the day.
The Shanghai Composite is keeping near flat levels as Chinese stocks are somewhat holding up amid hopes for more stimulus measures to bolster the economy. Meanwhile, US futures are up by ~0.4% on the day and that is easing the pressure on risk.
USD/JPY has also crept higher towards 110.38 currently but the near-term bias continues to favour sellers for now as price sits under the 200-hour moving average @ 110.68.
The overall risk mood is somewhat mixed going into European trading, with Treasury yields mixed across the board near flat levels mostly. 10-year yields are at 1.355%, just a hiccup away from potentially falling below 1.30%.

Chinese equities move lower into the close, not a good post-lunch break session

Where art thou PBOC stimulus?

CSI 300

SHCOMP
After returning from the lunch break earlier, Chinese stocks haven’t had the best of times as it has been more or less one-way traffic on the way down. The CSI 300 index is down by 1.3% while the Shanghai Composite index is down by 0.9% on the day currently.
Despite the earlier optimism – owing to hope for more stimulus measures – it isn’t proving to be enough as the upside momentum is starting to wane, for now at least.
The lower close today would be the third straight day of lower closes for Chinese indices after an impressive recovery following the post-Chinese New Year drop.

Japan PM Abe to request cancellation, delay, downsizing of sports, cultural events for 2 weeks

Earlier on was news a Japan pro baseball game would be played in an empty stadium.

A couple of other coronavirus – related items from about the place:

Kuwait says all Kuwaiti ports won’t allow ships arriving from or departing to China, Korea, Italy, Singapore, Thailand, Japan, Iraq

  • ships from the oil sector are excluded from the port ban

Senior IOC member says Tokyo Olympics could be cancelled due to coronavirus

Dick Pound said that if it proves too dangerous to hold the Olympics in Tokyo this summer because of the coronavirus outbreak, organizers are more likely to cancel it altogether than to postpone or move it.

Pound is a senior member of the International Olympic Committee
“In and around that time, I’d say folks are going to have to ask: ‘Is this under sufficient control that we can be confident about going to Tokyo or not?'” he said in an exclusive interview with The Associated Press.
Link here for more
Yep, that’d be bad news for Japan indeed.Dick Pound said that if it proves too dangerous to hold the Olympics in Tokyo this summer because of the coronavirus outbreak, organizers are more likely to cancel it altogether than to postpone or move it.

US officials says it will take at least 12-18 months to develop coronavirus vaccine

Not exactly encouraging

The official explained that a virus candidate could be ready in six weeks but the first trials will take 3-4 months and then the second round another six months. Then it will take some time to produce and distribute it.
He argued that the virus isn’t going to go away in that timeframe, so it will be effective whenever it comes.
He also expressed some optimism about Gilead’s drug as a treatment.

US Major indices down hard again (For us nothing new ………..as expected )

Dow and S&P down over 3%. 4th day of declines in a row

The US stocks are closing down sharply for the 2nd day in a row . The Dow and S&P  have the worst 2 day decline since February 2018. The Dow has plunged more than 1900 points in 2 days.  The Nasdaq index also moved into and closed in the red for the year (below a 8972.60).
The final numbers are showing
  • The S&P index fell 97.68 points or -3.03% at 3128.21. The high reached 3246.99. The low extended to 3118.77
  • The Nasdaq index fell -255.66 points or -2.77% at 8965.61. It’s high reached 9315.25. The low extended to 8940.488
  • The Dow fell 879.44 points or -3.15% at 27081.36. The high reached 28149.20. The low extended to 26997.62.
After the close, Disney announced that is the CEO Bob Iger would be stepping down.  He will be replaced by Bob Chapek effective immediately.