Dentsu shares slide on Olympics cancellation fears
Greek singer Sakis Rouvas wears the uniform of the torch relay runners as he holds the torch of the 2020 Tokyo Olympic Games during a presentation of the torch relay within in Greece, in Athens, Monday, Feb. 24, 2020. AP
Dentsu Group Inc's shares fell 2% in morning trading on Wednesday, with the spread of the coronavirus raising worries that the Olympic Games in Tokyo will be cancelled and bring pain for Japan's largest ad agency.
The virus epidemic has roiled global markets as investors worry about its economic impact. Japan's benchmark index was down 1%.
Dentsu is deeply involved in the planning and operation of the upcoming games and had been anticipating a big boost to its earnings as Japan Inc ramps up advertising spending ahead of the once-in-a-generation event.
Officials have denied the Olympics will be postponed or cancelled. But Tokyo has been forced to postpone training for volunteers, with large scale events such as the Tokyo Marathon halted altogether. (Reuters)