Asia stocks fell sharply in morning trade on Thursday after the Dow Jones Industrial Average plunged into bear market territory overnight as the World Health Organization (WHO) declared the coronavirus outbreak a global pandemic.
In Japan, the Nikkei 225 declined 5.17% while the Topix index fell 4.78%. The Japanese yen, often seen as a safe-haven currency, traded at 103.37 after strengthening from levels above 105 yesterday.
Meanwhile, shares in Australia dropped, with the S&P/ASX 200 down 5.83%. Hong Kong’s Hang Seng index also fell 3.34%.
Mainland Chinese stocks were lower in morning trade, with the Shanghai composite declining about 1.4% and the Shenzhen component down around 1.8%. The Shenzhen composite shed 1.72%.
Overall, the MSCI Asia ex-Japan index traded 3.26% lower.
U.S. President Donald Trump gave an address on Wednesday night Eastern Time to announce measures to tackle the coronavirus outbreak. That included a ban on travelers to the United States from Europe for the next 30 days.
That comes after the WHO declared COVID-19 a global pandemic on Wednesday.
“We’re deeply concerned both by the alarming levels of spread and severity, and by the alarming levels of inaction,” said WHO Director-General Tedros Adhanom Ghebreyesus. “We have rung the alarm bell loud and clear.”
Overnight on Wall Street, the Dow plummeted 1,462.94 points to close at 23,553.22 — more than 20% lower than the record close set only last month and putting to end an expansion that started in 2009 amid the financial crisis. The S&P 500 ended its trading day day 4.9% lower at 2,741.38 and just short of a bear market. The Nasdaq Composite fell 4.7% to 7,952.05 and was also about 19% below its all-time high.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 96.164 after an earlier high of 96.66.
The Australian dollar changed hands at $0.6466 after seeing highs above $0.657 earlier this week.
Oil prices plunged in the morning of Asian trading hours, with international benchmark Brent crude futures down 5.76% to $33.73 per barrel. U.S. crude futures also slipped 5.61% to $31.13 per barrel.
- Shares in Asia fell sharply in Thursday morning trade.
- U.S. President Donald Trump gave an address on Wednesday night Eastern Time to announce measures to tackle the coronavirus outbreak. That included a ban on travelers to the United States from Europe for the next 30 days.
- Overnight stateside, the Dow Jones Industrial Average plunged into bear market territory, putting to end an expansion that started in 2009 amid the financial crisis.
Source CNBC