Japanese Economy Taking A Coronavirus Hit

Above, Tokyo Tower. Photo by Armand Vaquer.

World stock markets are taking a big beating thanks to the outbreak of the coronavirus in China, which spread to other Asian nations and in other parts of the world.

The U.S. stock marked dived over 450 points alone yesterday.

The Japanese economy is reeling from the outbreak since China is their second largest trading partner.

Many cruises and tours to China have been cancelled.

According to the Japan Times:

Economy minister Yasutoshi Nishimura warned Tuesday that corporate profits and factory production could take a hit from the coronavirus outbreak in China that has rattled global markets and chilled confidence. 

Asian stocks extended a global selloff as the outbreak in China, which has killed over 100 people and spread to many countries, fueled concern over damage to the world’s second-largest economy and an engine for global growth. 

“There are concerns over the impact to the global economy from the spread of infection in China, transportation disruptions, cancellation of group tours from China and an extension in the Lunar New Year,” Nishimura told a news conference after a regularly scheduled Cabinet meeting. 

“If the situation takes longer to subside, we’re concerned it could hurt Japanese exports, output and corporate profits via the impact on Chinese consumption and production,” he said. 

China is Japan’s second-largest export destination and a huge market for its retailers. Chinese make up 30 percent of all tourists visiting Japan and accounted for nearly 40 percent of total spending by foreign tourists last year, according to an industry survey.

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