Asian stocks tumbles and so did the region’s currencies on Thursday, as coronavirus cases surged in Japan and South Korea and the investors quit the local assets in favor of safety further afield.
China has also reported a large drop in the new cases and also announced an expected interest rate cut to its economy.
That came altogether with a jump in infections in South Korea, and two deaths in Japan and the researchers finding that pathogen spreads more easily than previously believed.
The MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.3%, led by declines on Hong Kong’s Hang Seng and South Korea’s KOSPI.
The E-mini futures for the S&P 500 traded a fraction softer and European futures fell 0.2%, while bonds firmed slightly.
The currencies from Australian dollar to Indian rupee were under pressure, as the concerns about the impact of the coronavirus drove money to the dollar.
The global equity strategist, Sean Darby at Jefferies in Hong Kong said,
“The markets have taken a step back because authorities won’t do any major stimulus until they are completely sure that the virus has stopped”
“There is no point in doing it when the people are sitting at home. They can’t even spend the money or use it.”
All this kept the effect of China’s widely anticipated interest rate trim mostly confined to mainland, where Shanghai Composite index surged 1.2%.
The Japan’s Nikkei was also in positive territory and thanks to an overnight slipped in currency a boon for exporters but the gains were pared as more cases of infections outside China hurt sentiment.
It’s reported that that the 2 passengers from a coronavirus-hit cruise ship moored near the Tokyo have died, the Japan’s government said on Thursday that is bringing the death toll outside China to 10. There are more than 620 of 3,700 passengers have been also infected on the ship.
31 new cases of coronavirus were reported by the South Korea’s government on Thursday, after a new outbreak was traced to a church that is bringing the number of people infected in country to 82.
Only in China, more than 2,100 people have died from the virus and there are 74,500 cases there.