TOKYO - Japan's financial watchdog has begun conducting an emergency survey on domestic financial institutions with business operations in China to gauge how the coronavirus outbreak could affect credit costs, government sources said on Wednesday.

The virus has killed more than 2,000 people in China and has already taken a toll on the world's second-largest economy, hampering supply chains for companies from car manufacturers to smartphone makers and disrupting tourism.

The Financial Services Agency is surveying Japanese financial institutions over concern some of their lending to Chinese borrowers could sour, the sources said on condition of anonymity because they were not authorised to speak publicly.

(Reporting by Takahiko Wada; Writing by Tetsushi Kajimoto; Editing by Chris Gallagher) ((tetsushi.kajimoto@thomsonreuters.com; +81-3-4563-2731;))