Biggest Drop in more than three Decades
The coronavirus outbreak continues to impact the stock market around the world as the asia pacific stock market experienced a seesaw on Tuesday. The stocks which were higher till afternoon seesawed after the Wall Street plunged to their biggest day drop in more than three decades overnight. Moreover, Philippines has shut its markets temporarily until the further notice. A statement on the Philippines Stock Exchange website stated, “Trading is suspended to ensure the safety of employers and traders in the light of escalating cases of the coronavirus disease.”
The Fluctuating Stock Market
Amongst the countries in the Asia Pacific region, the stocks in Australia led gains. After falling by 10% on Monday, the S&P/ASX 200 hiked by 3.58%. The shares in mainland China were also positive after an earlier slip. The Shenzhen Composite nearly edged 0.141% higher while the Shanghai composite nearly crossed the flatline. Moreover, Hong Kong’s Hang Seng index advanced 1.05%.
In Japan, the Nikkei 225 gained 0.68% and returned to positive territory again. The topic index too, surged by 2.21%. South Korea’s Kospi, however fell by 1.13% and stayed in the negative territory. Philippines’ PSE Composite index also plunged by almost 8%. Overall, the Asia ex-Japan index traded 0.12% higher.
The Rapidly Evolving Pandemic
Main focus of the investors globally will be on the rapidly evolving coronavirus outbreak. The pandemic has already affected more than 1, 68,000 people across the world and taken almost 7000 lives. “Drastic measures by the Fed and other central Banks have failed to appease markets with investors still running towards the exit door of the risk assets as governments step up their radical measures to contain the COVID-19 outbreak,” said Rodrigo Catril, Senior Foreign Exchange Strategist at National Australia Bank.
