Nikkei Index Falls Below 29,000... Sharp Drop Amid Emergence of New Variant Virus

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Suhwan] Japan's representative stock index, the Nikkei 225, plunged more than 2.2%, breaking below the 29,000 level. Analysts attribute the market decline to the confirmation of a new variant virus emerging in South Africa.

As of 10:20 AM on the 26th, the Nikkei 225 index was trading at 28,846.41, down 2.21% (652.87 points) from the previous trading day.

The Nihon Keizai Shimbun reported, "The psychological support level of 29,000 has been broken," adding, "It plunged more than 500 points."

The newspaper analyzed that the market decline was due to reports of a powerful COVID-19 variant virus being discovered in South Africa.

Earlier on the 24th (local time), The Guardian reported that a new variant virus, 'B.1.1.529,' which carries 32 genetic mutations in the 'spike protein,' has been found in southern African regions including Botswana and South Africa.

The South African Department of Health officially confirmed the emergence of the new variant on the 25th and warned that it could have high transmissibility.

Dr. Tom Peacock, a virologist at Imperial College London, shared the viral information of the B.1.1.529 variant on a genome information sharing site, pointing out that "the very large number of spike mutations could be highly concerning."

With the confirmation of this highly transmissible new variant virus, it is evaluated that investors are withdrawing funds due to risk-averse sentiment.

The Nihon Keizai Shimbun stated, "Investors are increasingly inclined to avoid investment risks," and added, "(They) are concerned about the reintroduction of lockdown measures due to the increase in COVID-19 spread overseas."

This content was produced with the assistance of AI translation services.