SINGAPORE (THE BUSINESS TIMES) - Regional shares were hit by coronavirus fears on Wednesday amid the worsening situation in countries such as India and Japan, while Wall Street's fall for the second straight day just added to the anxiety.

India reported 2,023 Covid-19 fatalities on Wednesday, its highest single-day death toll. In Japan, the government is considering a state of emergency for Tokyo and Osaka as new case numbers surge.

The Nikkei 225 Index ended the day 2.03 per cent lower, while Seoul's Kospi slipped 1.52 per cent and the Hang Seng shed 1.76 per cent. The local bourse was not spared, with the benchmark Straits Times Index (STI) falling 1.16 per cent, or 37.11 points, to 3,155.06.

Yangzijiang Shipbuilding was the STI's top gainer for the day, advancing 0.74 per cent to $1.37.

The firm noted on Monday that it had struck shipbuilding contracts with a total value of US$970 million (S$1.3 billion).

Meanwhile, Keppel Corporation was the top decliner, falling 2.57 per cent to end at $5.31.

DBS was the second-worst performer, closing 2.14 per cent lower at $28.40. DBS said on Tuesday that it will acquire a 13 per cent stake in Shenzhen Rural Commercial Bank, which will make it the largest shareholder of the Chinese lender.

Jefferies equity analyst Krishna Guha said that while the investment "doesn't put dividend at risk, it may elongate the time needed to fully restore dividend to pre-Covid level".

On the broader market, losers outnumbered gainers 324 to 186, with 1.81 billion shares worth $1.53 billion changing hands.

"Asian equities edge lower in sympathy with Wall Street," noted Mr Jeffrey Halley, senior market analyst for Asia-Pacific at Oanda. "Overall, the price action looks corrective after a strong performance over the past week in a market being driven by short-term risk sentiment.

"A thin data calendar means that the status quo is likely to continue for the remainder of the week."