Asian markets fall as WHO mulls declaring global virus emergency

Asian markets fell yesterday with tech stocks and airlines among key losers as the World Health Organization called an urgent meeting on whether to declare a global health emergency over a virus which has killed 170 people in China.

The WHO, which initially downplayed the severity of the disease, warned all governments to be “on alert” as China reported 1,700 new cases of the SARS-like virus which has infected 7,700 people and been detected in at least 15 countries.

Airlines around the world are either suspending or paring back services in and out of China following cases of human-to-human transmission outside the country, and manufacturers have also been cutting their Chinese operations.

US Federal Reserve Chairman Jerome Powell said the coronavirus posed a new risk to growth in China and elsewhere.

In Asian stock markets, Taipei closed down 5.8 per cent on the first day of trade since the Chinese New Year break, with Eva Airways plunging 9.9 per cent and market heavyweight and key Apple supplier Taiwan Semiconductor Manufacturing (TSMC) sliding five per cent.

Fellow Apple supplier Hon Hai Precision Industry fell by the daily limit 10 per cent after it said most of its manufacturing plants in China would remain closed until February 10.

The tech giant, better known as Foxconn, is the world’s biggest contract electronics maker and assembles Apple’s iPhones as well as gadgets for other international brands.

The move will likely impact global supply chains for tech companies that rely on the Taiwan firm to manufacture everything from iPhones to flat-screen TVs and laptops.

Foxconn, which employs more than one million workers in China, accounts for the most US-bound exports by volume from Hubei province, which is at the epicentre of the virus outbreak.

Tokyo closed down 1.7 per cent and Hong Kong ended 2.6 per cent lower.

Japanese automaker Toyota said it would keep its plants in China closed until at least February 9 over concerns about the outbreak, which has killed 170 people and infected more than 7,700.

Among other markets, Seoul slipped 1.7 per cent, Singapore retreated 0.8 per cent and Sydney was down 0.3 per cent.

European markets took their lead from the Asian losses, with London down 1.1 per cent at the open, Frankfurt off 1.4 per cent and Paris 1.5 per cent lower.

“Equity markets remain acutely vulnerable to adverse developments in the Wuhan virus situation,” said OANDA analyst Jeffrey Halley.

 

Asian markets fall as WHO mulls declaring global virus emergency

Asian markets fell yesterday with tech stocks and airlines among key losers as the World Health Organization called an urgent meeting on whether to declare a global health emergency over a virus which has killed 170 people in China. The WHO, which initially downplayed the severity of the disease, warned all governments to be on alert as China reported 1,700 new cases of the SARS-like virus which has infected 7,700 people and been detected in at least 15 countries. Airlines around the world are either suspending or paring back services in and out of China following cases of human-to-human transmission outside the country, and manufacturers have also been cutting their Chinese operations. US Federal Reserve Chairman Jerome Powell said the coronavirus posed a new risk to growth in China and elsewhere. In Asian stock markets, Taipei closed down 5.8 per cent on the first day of trade since the Chinese New Year break, with Eva Airways plunging 9.9 per cent and market heavyweight and key Apple supplier Taiwan Semiconductor Manufacturing (TSMC) sliding five per cent. Fellow Apple supplier Hon Hai Precision Industry fell by the daily limit 10 per cent after it said most of its manufacturing plants in China would remain closed until February 10. The tech giant, better known as Foxconn, is the worlds biggest contract electronics maker and assembles Apples iPhones as well as gadgets for other international brands. The move will likely impact global supply chains for tech companies that rely on the Taiwan firm to manufacture everything from iPhones to flat-screen TVs and laptops. Foxconn, which employs more than one million workers in China, accounts for the most US-bound exports by volume from Hubei province, which is at the epicentre of the virus outbreak. Tokyo closed down 1.7 per cent and Hong Kong ended 2.6 per cent lower. Japanese automaker Toyota said it would keep its plants in China closed until at least February 9 over concerns about the outbreak, which has killed 170 people and infected more than 7,700. Among other markets, Seoul slipped 1.7 per cent, Singapore retreated 0.8 per cent and Sydney was down 0.3 per cent. European markets took their lead from the Asian losses, with London down 1.1 per cent at the open, Frankfurt off 1.4 per cent and Paris 1.5 per cent lower. Equity markets remain acutely vulnerable to adverse developments in the Wuhan virus situation, said OANDA analyst Jeffrey Halley.