Stock markets are taking quite the beating into the second day of this week over rising fears of the spread of the coronavirus, with Japan’s Nikkei dropping nearly 5% to the lowest level seen in four months. At the time of writing NIKKEI225 has recovered slightly and is trading at around 23386.

Japanese stock markets appear to have had a delayed reaction to Monday’s impact when global equities slid lower as Japan was shut for a holiday in the previous session. The latest decline has come on the back of increasing number of coronavirus infections being reported from other countries, as well as a rise in cases in China too.

Business sentiment is under strain as the extended shutdown and travel restrictions are likely to impact supply chains, especially of multinational companies. While China has enforced lockdown in several regions, resulting in the closure of factories and workplaces, Italy is taking cues and enforcing similar restrictions in its northern region to contain the spread of the virus.

The situation in Japan also remains tense after the government issued advisories urging its citizens and businesses to avoid unnecessary travel.