The Japanese yen has weakened slightly against the US dollar early on Wednesday after rising amid worries of an outbreak of coronavirus epidemic in China, which boosted the safe haven appeal of the currency. At the time of writing, USD/JPY is trading around 110.03.

The epidemic, which causes a kind of pneumonia in affected patients, has spread across major Chinese cities like Beijing and Shanghai while cases are also being reported internationally, especially in the US. Worries about its outbreak increased in the wake of the upcoming Chinese New Year holidays when more people are set to travel to and from China, which could further trigger the spread of this virus.

Asian markets are trading with a sense of tension that such an outbreak could affect economic growth in China. Previous outbreaks of similar epidemics like the SARS killed around 800 people worldwide and severely impacted tourism across Asia.

For now, however, the Japanese yen has steadied as markets wait for more updates before making their next move.