Global stocks and oil dropped on 27 January after China warned that the new coronavirus was spreading fast. The country extended its Lunar New Year holidays to gain time to fight the epidemic.
Analysts say the escalation of the news causes more uncertainty especially for travel-oriented companies.
Investors are scared of a repeat of the 2003 SARS virus outbreak, which also began in China. Luxury goods makers and airlines suffered particularly on equity markets, with the tourist spending in this part of the year.
Shares of energy and technology companies were also weak. Oil prices also retreated amid the major panic that the virus has caused in the markets.
The virus has so far killed 106 people, and infected over 4,500others. Wuhan, a city in the central China Hubei province with roughly 11 million citizens, is the epicenter. It has been quarantined since 23 January and travel in or out is of the area was canceled.
South Korea, Taiwan, Thailand, Nepal, Vietnam, Saudi Arabia, Singapore, US, France, Germany and Australia have all confirmed patients who have contracted the disease.
Asian stocks fall as China virus rattles markets
EPA-EFE/WU HONG
Chinese people wear masks in the street in Beijing, China, 21 January 2020. More cases of the mysterious SARS-like virus linked to the Wuhan pneumonia outbreak were reported in China on 20 January 2020, bringing the total number of cases to more than 200 with three deaths so far.
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