Monitoring Desk
TOKYO: Tokyo’s benchmark Nikkei Index dipped nearly two percent Tuesday on geopolitical risk fears following an unconfirmed report that North Korean leader Kim Jong Un was being treated after surgery.
The benchmark Nikkei 225 index fell 1.97 percent, or 388.34 points, to close at 19,280.78, while the broader Topix Index was down 1.15 percent, or 16.52 points, to 1,415.89.
“The market reacted negatively to the CNN report on the health of North Korean leader Kim Jong Un,” said Yoshihiro Ito, chief strategist at Okasan Online Securities.
Daily NK, an online media outlet run mostly by North Korean defectors, said Kim had undergone a cardiovascular procedure earlier this month and was recovering at a villa in North Pyongan province.
It triggered widespread speculation, with CNN citing a US official saying that Washington was “monitoring intelligence” that Kim was in “grave danger after a surgery”.
But South Korea played it down, with a government spokesman saying they “have nothing to confirm and no special movement has been detected inside North Korea as of now”.
Analysts also said investor sentiment worsened on plunging oil prices. In New York, the Dow declined 2.4 percent after the price for US benchmark West Texas Intermediate crude for May delivery plunged to -$37.63 a barrel.
In Tokyo share trading, Nintendo was up 0.21 percent to 46,030 yen after a report said the game giant is set to increase production of its Switch game console to meet surging stay-at-home demand.
ANA Holdings slid 0.32 percent to 2,475 yen after it slashed its annual net profit forecast by 71 percent over massive falls in demand and major cancellations caused by the coronavirus spread. Other major shares were mostly lower, with market heavyweight Fast Retailing dropping 3.73 percent to 47,880 yen and SoftBank Group 4.11 percent to 4,593 yen.
The dollar fetched 107.45 yen in Asian trade, against 107.67 yen in New York late Monday. (AFP/APP)
