Home Business Australia and South Korea shares drop by more than 5%

Australia and South Korea shares drop by more than 5%

by drbyos

Shares in Asia Pacific experienced significant declines in Monday morning trade as concerns about the economic impact of the global coronavirus epidemic continue to weigh heavily on investor sentiment.

South Korean stocks were among the biggest losers in the major regional markets, with Kospi down 5.59% in early trading.

In Australia, the S&P / ASX 200 lost 5.73% in morning trade due to falling sectors. The heavily weighted financial sub-index fell by more than 7%, with the shares of the so-called big four banks in the country falling sharply: Australia and New Zealand Banking Group fell by 7.49%, Commonwealth Bank of Australia fell by 6, 68%, Westpac fell 8.81% while National Australia Bank slid 8.75%.

The Nikkei 225 in Japan reversed the general trend at the regional level as it increased by 0.6%, while the Topix index also added 0.1%.

Overall, the MSCI Asia ex-Japan index fell 1.72%.

“The economic costs of the COVID-19 epidemic are starting to turn out,” wrote ANZ chief economist Richard Yetsenga in a statement. “We basically revised our G3 growth forecasts downwards, with the United States likely to experience its weakest performance since 1946.”

The global coronavirus epidemic continues to spread rapidly worldwide, with the number of infected now over 294,000 and over 12,900 victims, according to data from the World Health Organization.

United States, US stock futures plummeted Sunday night. Dow Jones Industrial Average futures fell by more than 800 points, equal to 4.5%, together with the S&P 500 and Nasdaq-100 futures. Futures briefly hit the “limit” previously, which means they can’t go lower.

This was when a coronavirus stimulus bill failed a key Senate procedural vote. The number of infected in the United States has increased dramatically in recent weeks, with New York state alone now representing more coronavirus cases than other countries facing challenges in handling their load cases such as France and South Korea. .

Oil prices saw sharp drops in the morning of Asian hours Monday, while international futures on the Brent fell 5.49% to $ 25.50 a barrel. US crude oil futures also fell 3.27% to $ 21.89 a barrel.

The US dollar index, which tracks the greenback against a basket of its peers, was the latest at 102.471 after breaking the 100 level last week.

The Japanese yen was trading at 110.39 per dollar after weakening from levels below 108 last week. The Australian dollar changed hands to $ 0.5769 after highs above $ 0.6 seen last week.

– Fred Imbert of CNBC contributed to this report.

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