South Korea to train medical students to combat future epidemics

File image of medical workers in protective gear walking into a hospital to treat coronavirus patients amid a surge in confirmed COVID-19 cases in Daegu, South Korea. March 8, 2020. REUTERS / Kim Kyung-Hoon / Archive

SEOUL, Jul 24 (Reuters) – South Korea will add 4,000 medical students over the next 10 years to strengthen the ranks of its health personnel and improve its response to other health emergencies in the future, government officials and party officials said. in the power.

The authorities warned of the need to train more doctors for possible outbreaks of infectious diseases even more serious than COVID-19, caused by the coronavirus, pointing to the risk of more frequent epidemics at a time when there is a limited number of beds to care for the sick.

To fill that gap, officials said they plan to increase the number of admissions to medical schools using a combination of new fees and incentives for students in less profitable specialties and for those who complete a decade working in public health in a rural area.

“We will increase the quota for medical students to strengthen health teams in specialized fields,” said Kim Tae-nyeon, a lawmaker with the ruling Democratic Party of Korea.

The plan is to raise student admissions to medical schools by about 400 a year over the next decade, before returning to the 3,058 quota, which has been flat since 2006.

The government said it will provide tuition subsidies and full scholarships to around 300 students in areas such as epidemiology, gynecology or surgery, considered unpopular specializations in contrast to plastic surgery or dermatology.

Officials have said that South Korea’s 2018 ratio of 2.4 doctors per 1,000 people was well below the average of 3.5 for Organization for Economic Cooperation and Development (OECD) nations.

Report from Sangmi Cha. Edited in Spanish by Marion Giraldo

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South Korea reports recovered patients are testing positive for coronavirus again

Several people in a shopping center enjoy the view towards a park and at the same time try to maintain social distance to protect themselves from the coronavirus. South Korea, April 8, 2020. FILE. REUTERS / Heo Ran

SEOUL, Apr 10 (Reuters) – South Korean authorities reported on Friday that 91 patients who had allegedly recovered from the coronavirus tested positive for the disease again.

Jeong Eun-kyeong, director of the Centers for Disease Control and Prevention (KCDC), told a news conference that the virus could have been “reactivated” rather than the patients being reinfected.

South Korean health authorities say the causes of the trend remain unclear, and are being investigated by epidemiologists.

The possibility that a person may be reinfected with the virus is a factor of international concern, as many countries hope that their already infected populations can develop sufficient immunity to contain the pandemic.

The figure reported by South Korea shows a rise from 51 reported cases of second infection on Monday.

Nearly 7,000 South Koreans have recovered from COVID-19, the disease that causes the coronavirus.

“The number will simply go up, 91 is the beginning for now,” said Kim Woo-joo, professor of infectious diseases at Guro Hospital, University of Korea.

KCDC’s Jeong explained that there was a possibility that patients had undergone a “reactivation” of the virus rather than being reinfected.

Reports by Josh Smith and Sangmi Cha. Edited in Spanish by Marion Giraldo

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The United States could become the next epicenter of the coronavirus, says WHO

GENEVA / TOKYO (Reuters) – The World Health Organization said Tuesday that the United States could become the global epicenter of the coronavirus pandemic, which eventually forced reluctant organizers to postpone the Tokyo 2020 Summer Olympics.

Britain joined the ranks of bloc countries to try to detain the virus, and data showed that commercial activity collapsed from Australia, Japan and Western Europe at a record pace in March, with the United States expecting it to be equally terrible.

“The coronavirus epidemic represents a serious external shock to the macro outlook, similar to a large-scale natural disaster,” said analysts at the BlackRock Investment Institute.

But amid the sadness of the harvest, the Chinese province of Hubei, where the virus was first identified in December, said it would lift travel restrictions for people leaving the region as the epidemic subsides.

Confirmed coronavirus cases worldwide exceeded 377,000 in 194 countries and territories earlier Tuesday, according to a Reuters count, over 16,500 of them fatal.

In Geneva, WHO spokeswoman Margaret Harris told reporters that there has been a “big acceleration” in infections in the United States.

In the previous 24 hours, 85% of new cases were in Europe and the United States, and of these, 40% were in the United States.

As of Monday, the virus had infected over 42,000 people there, killing at least 559.

Asked if the United States could become the new epicenter, Harris said, “We are now seeing a very large acceleration in cases in the United States, so it has that potential.”

US state and local officials have denounced the lack of coordinated federal action, claiming that taking action on their own has put them in competition for supplies.

President Donald Trump acknowledged the difficulty.

“The world market for masks and fans is crazy. We’re helping states get equipment, but it’s not easy, “he tweeted.

OLYMPIC ORGANIZERS ENTER

The organizers of the Olympic Games and the Japanese government had clung to the hope that the biggest sporting event in the world could go on, but in the end they bowed to the inevitable to make Tokyo 2020 the last and greatest victim of a calendar. devastated sportsman.

FILE PHOTO: A lonely person walks in the rain in a mostly deserted Times Square after the outbreak of Coronavirus disease (COVID-19), in the Manhattan neighborhood of New York City, New York, USA, March 23, 2020. REUTERS / Carlo Allegri

After a phone call with the president of the International Olympic Committee (IOC) Thomas Bach, Japanese Prime Minister Shinzo Abe said on July 24th. Event 9 will be rescheduled for the summer of 2021 at the latest, as proof of victory over the coronavirus.

“President Bach has said he agrees, 100%.”

It was the first time in the 124-year history of the Olympics that they had been postponed, although they had been canceled three times during the two world wars of the 20th century.

Of the top 10 countries by number of cases, Italy reported the highest mortality rate, around 10%, which at least partially reflects its elderly population. The global mortality rate – the ratio of confirmed deaths to infections – is around 4.3%, although national data may vary widely based on how many tests are performed.

Britain, believed by experts about two weeks behind Italy in the epidemic cycle, began to curb unprecedented peacetime movements on Tuesday after Prime Minister Boris Johnson ordered the country to stay home.

The streets of the capital were strangely silent since all but the essential shops closed and people only went to work if it was inevitable.

Johnson had resisted the pressure to impose a complete blockade even if other European countries had done so, but he was forced to change course as projections showed that the health system could be overwhelmed.

Meanwhile, the Chinese province of Hubei, the original center of the epidemic, will raise the sidewalks on people leaving the area, but other regions will strengthen controls as new cases will double due to imported infections.

Presentation (7 images)

The capital of Wuhan province, which has been completely blocked since January 23, lifted travel restrictions on April 8.

However, the risk of infections abroad appears to be on the rise, prompting more stringent screening and quarantine measures in major cities such as the capital Beijing.

Global interactive spread of graphical tracing of coronavirus: open in an external browser – here

Additional reports by Emma Farge, Stephanie Nebehay, Karolos Grohmann, Leika Kihara, Sakura Murakami, Lusha Zhang and Huizhong Wu; Written by Nick Macfie; Editing by Jon Boyle and Angus MacSwan

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Rebound in Asian equities, the Fed places infinite QE against economic reality

SYDNEY (Reuters) – Asian equities rebounded sharply on Tuesday as the US Federal Reserve’s promise of bottomless dollar funding eased painful tensions in the financial markets, although it could not mitigate the immediate economic blow of the coronavirus.

PHOTO FILE: a currency trader works in front of electronic cards showing the composite stock price index of Korea (KOSPI) and the exchange rate between the US dollar and South Korea won, in Seoul, South Korea , March 23, 2020. REUTERS / Heo Ran

While Wall Street didn’t look impressed, investors in Asia were encouraged enough to raise the E-Mini futures for the S&P 500 by 3% and the Japanese Nikkei by 6.2%. If sustained, it would be the biggest daily growth for Nikkei since late 2016.

MSCI’s broader index of Asia-Pacific equities outside Japan jumped 4.2%, more than halving Monday’s drop. Shanghai blue chips gained 2.7%.

Europe also showed a brighter shadow as EUROSTOXXX 50 futures rose 3.3% and FTSE futures 3.1%.

In its latest drastic step, the Fed offered to buy unlimited quantities of assets on stable markets and expanded its mandate to corporate and muni bonds.

The numbers were certainly large, with analysts estimating that the package could earn $ 4 trillion or more in loans to non-financial corporations.

“This open and heavily enhanced QE program is a very clear signal that the Fed will do whatever it takes to maintain the integrity and liquidity of the Treasury market, asset-backed key markets and other key markets,” said David de Garis. , an economics director at NAB.

The Fed package helped calm nerves in bond markets where two-year Treasury yields hit a low since 2013, while 10-year yields dropped to 0.79%.

Analysts have warned that it would do little to compensate for the short-term economic damage caused by mass blockades and layoffs.

Speculation is mounting Thursday’s data will show that unemployment claims in the United States rose by 1 million last week, with forecasts reaching 4 million.

Goldman Sachs warned that US economic growth could shrink by 24% in the second quarter, two and a half times larger than the previous post-war record.

A series of flash polls on European and American production in March is scheduled for Tuesday and are expected to show deep falls in the recessionary territory.

Surveys from Japan have shown that its service sector has shrunk at the fastest pace recorded in March and the factory’s activity at the fastest pace in about a decade.

HIGH DOLLAR OFF

While governments around the world are launching bigger and bigger fiscal stimulus packages, the latest U.S. effort remains stuck in the Senate as Democrats said it contained too little money for hospitals and not enough limits for funding. big business.

The logjam combined with the Fed’s stimulus spray to take away some shine from the US dollar, although it remains in demand as a global liquidity buffer.

“The special role of the USD in the global financial system – it is used globally in a series of transactions such as commodity prices, issuing bonds and international bank loans – means that USD liquidity has a reward,” he said. CBA economist Joseph Capurso.

“While liquidity is an issue, the USD will remain strong.”

For now, the prospect of massive Fed dollar funding has seen the currency decline to 110.38 yen from Monday’s 111.56 monthly high.

The euro rebounded 0.8% to $ 1.0805, compared to a three-year low of $ 1.0635. The dollar index slipped 0.4% to 101.720 and out of a three-year peak of 102.99.

Currencies linked to commodities and emerging markets that suffered most during the recent divestment of the assets, also benefited from the stable hand of the Fed. The Australian dollar rose 1.5% to $ 0.5915 and away from a minimum of 17 years = $ 0.5510.

Gold rose in the wake of the Fed’s promise of even cheaper money, and rose 1.7% to $ 1,578.45 an ounce after rising from a low of $ 1,484.65 on Monday.

Oil prices also rebounded after recent wild losses, with U.S. crude oil rising by $ 1.09 to $ 24.45 barrels. Brent crude reached 97 cents to $ 28.00.

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China sees new cases of coronaviruses falling; all new imported cases

BEIJING / SHANGHAI (Reuters) – Mainland China has seen a drop in the daily count of new coronavirus cases, reversing four consecutive days of gains, while the capital Beijing has increased measures to contain the number of infections arriving from abroad.

Passengers wearing masks are seen in a subway station after the city’s emergency alert level for coronavirus disease (COVID-19) was downgraded in Shanghai, China on March 23, 2020. REUTERS / Aly Song

China reported 39 new confirmed cases on Sunday, the National Health Commission said, down from 46 a day earlier. They all involved travelers from abroad, many of whom are Chinese students returning home.

The city of Beijing has expanded its measures to contain imported infections by diverting all international flights arriving from Monday to other airports in other cities, including Shanghai and to the west of Xian, where passengers will be screened for viruses.

Beijing reported 10 new imported cases, the National Health Commission said Monday, down from 13 a day earlier. Infections from abroad into the city reached an all-time high of 21 on March 18.

Shanghai and Guangzhou also said that all arriving international passengers will be tested for coronavirus screening, expanding a program that previously only applied to those from heavily affected countries.

Shanghai reported 10 new cases on Sunday, down from a record 14 the day before.

Guangdong Province has seen seven new imported infections, Fujian had four and Jiangsu had two. Hebei, Zhejiang, Jiangxi, Shandong and Sichuan have only seen one case, bringing the total number of cases imported to China to 314 so far.

Mainland China has not seen any new infections transmitted locally.

In Wuhan, the capital of the central province of Hubei, the authorities eased severe blocking measures as the epicenter of the epidemic in China saw no new infections for the fifth day.

Downtown Wuhan remains the only high-risk area in the province, with other cities and counties in Hubei now being classified as low-risk.

Wuhan entered a virtual blockade on January 23 to curb the spread of the virus to the rest of China.

According to Sunday authorities, people can enter the city if they are certified healthy and have no fever.

Hubei residents in Wuhan may request to leave the city, but must be tested for the virus and certified as healthy.

There is still no indication that Wuhan residents can leave the city for non-essential reasons.

As of Sunday, the accumulated total number of confirmed cases in mainland China was 81,093.

The death toll from the outbreak in mainland China reached 3,270, an increase of nine over the previous day.

Reporting by Ryan Woo, Lusha Zhang, Engen Tham and Jing Wang; Editing by Himani Sarkar and Michael Perry

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Dollar rules; The stimulus from the ECB increases ties

LONDON / SINGAPORE (Reuters) – The dollar rose on Thursday when extraordinary steps by central banks around the world to cope with a coronavirus-induced financial route had mixed success.

The dollar has gained against the British pound GBP = D3 at its peak since 1985, lasting 0.8% at $ 1.1535, while investors have rushed to ensure liquidity.

Against a basket of six major currencies = USD, the dollar gained 0.6%, close to a three-year high that had hit the previous day.

Bond markets recovered after the European Central Bank promised Wednesday to buy 750 billion euros ($ 820 billion) of sovereign debt until 2020. This brought the ECB’s planned purchases this year to 1.1 trillion euros, with only new purchases worth 6% of GDP in the euro area.

Sovereign bond yields in Italy and across the euro area fell after ECB emergency measures and European equities halted their course.

“The announcement (the ECB) went some way to comfort markets that debt costs in those economies will not spiral up,” said Mike Bell, J.P.’s global market strategist. Morgan Asset Management.

The large Euro STOXX 600 in Europe posted a 1.2% gain in early trading, with most indices in Frankfurt. GDAXI up 1.5% and Paris .FCHI up 3.3%. London’s FTSE .FTSE added 0.6%.

Shares remained shaky elsewhere as the dollar rose. MSCI’s broader index of Asia-Pacific equities outside Japan collapsed by a 4% slump .MIAPJ0000PUS. Korea and Taiwan led losses when the index plummeted to a four-year low, with circuit breakers primed in Seoul, Jakarta and Manila.

The global equity index of MSCI .MIWD00000PUS, which tracks stocks in 49 countries, fell 0.2%.

Wall Street futures pointed to earnings of 0.1%. EScv1.

(Graph: total return on stocks and bonds, here)

ITALIAN YIELD FALL

Italy, which saw its borrowing costs jump in recent days, led the decline in yields after the passage of the ECB. Its two-year bond yields plummeted by more than 100 basis points to 0.41% IT2YT = RR, heading for the biggest one-day drop since 1996. Italy’s 10-year bond yields dropped to 90 bps at 1.40% IT10YT = RR.

The gap from the surest German Bund yields narrowed by almost 100 bps from Wednesday’s closing levels and was set for the biggest daily drop since the 2011 euro crisis.

Markets elsewhere have failed to respond to central bank action. Prior to the ECB’s move, the US Federal Reserve promised a liquidity mechanism for money market mutual funds and the Bank of Japan made two unscheduled purchases of bonds totaling 1.3 trillion yen ($ 12 billion). The Australian central bank has reduced interest rates to an all-time low of 0.25%.

Traders have reported tremendous tensions in the bond markets, however, as the troubled funds have sold any liquid assets to cover equity losses and investors’ redemptions.

Yields of 10-year benchmark sovereign bonds in New Zealand, Malaysia, Korea, Singapore and Thailand increased as prices collapsed and the U.S. 10-year Treasury US10YT = RR increased 10 basis points during the session.

“Not only are central banks, but governments are throwing everything on the economy right now, but markets are not responding,” said Luca Paolini, chief strategist of Pictet Asset Management.

Commodities have declined with the worsening epidemic. The pandemic killed nearly 9,000 people worldwide, infected over 218,000 and caused widespread emergency blockades.

Gold XAU = decreased by 1% before recovering some of those losses. Copper has touched the lower limit in Shanghai.

PHOTO PHOTO: pedestrians wearing face masks look at an electrical panel showing the averages of stocks of Japanese Nikkei and American Nasdaq outside a mediation in a business district of Tokyo, Japan, January 30, 2020. REUTERS / Kim Kyung-Hoon

Oil stabilized after a night dip to an 18-year low in Asian trade. Brent LCOc1 rose from $ 2.14 to $ 27.02.

J.P. Morgan predict that the US economy will decline by 14% in the next quarter and the Chinese economy will drop by more than 40% on an annual basis in the current.

“There is no longer any doubt that the longest global expansion recorded will end this quarter,” they said in a statement. “The problem with the key prospects now is to measure the depth and duration of the 2020 recession.”

Reporting of Tom Wilson in London and Tom Westbrook in Singapore; edited by Sam Holmes, Larry King

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Latest news on the spread of coronavirus worldwide

(Reuters) – Hundreds of millions of people faced a world turned upside down Wednesday by unprecedented emergency measures against the coronavirus pandemic that is killing the old and vulnerable and threatening prolonged economic suffering.

DEATH, INFECTIONS

– The virus has infected over 212,000 people worldwide and the death toll has exceeded 8,700 in 164 countries.

– For the global diffusion of interactive graphic tracking: open tmsnrt.rs/3aIRuz7 in an external browser

AMERICAS

– All 50 states in the United States have reported cases and the total number of known infections in the United States that close out of 8,000. The death toll in the United States rose to at least 151. – On Wednesday, the United States and Canada closed their shared border to “non-essential traffic” to curb the transmission of the coronavirus. More than 60,000 homeless people could fall ill with coronavirus in California in the next eight weeks, straining the health system.

Mexico experienced its first coronavirus death on Wednesday.

– Canada has decided to provide a $ 18.6 billion aid package directly to the families and businesses concerned.

– Chile declared a 90-day catastrophe on Wednesday.

– Brazilian retail, transportation and manufacturing have been hammered and the government has stopped accepting Venezuelan refugees at the border.

– President of Peru Martin Vizcarra has limited overnight movements across the country.

Venezuela fears that the coronavirus may spread like a fast moving fire through the country’s notoriously overcrowded and unhealthy prisons.

EUROPE – Italy reported 475 new deaths on Wednesday, the largest increase in numbers since the epidemic first came to light on February 21st. The total number of confirmed cases increased from 4,207 to 35,713.

French health authorities reported 89 new coronavirus deaths on Wednesday, bringing the total to 264 or an increase of nearly 51%.

– Russian media have launched a “significant disinformation campaign” to wreak panic in the West, according to a European Union document seen by Reuters.

– Poland will receive over 10,000 test kits and tens of thousands of other protective items from China.

– Belgium imposed a blockade from noon (1100 GMT) on Wednesday until April 5.

– Switzerland extended border controls and suspended the Schengen and national visa issue for three months.

– Ukraine, where a legislator has tested positive, has imposed a state of emergency in the region around the capital Kiev.

– Croatia will close cinemas, restaurants, bars and shops, but will allow the operation of grocery stores, pharmacies and petrol stations.

– President Tayyip Erdogan advised Turks not to leave home unless necessary for three weeks and to minimize social contacts until the threat of the coronavirus subsides, but has not told them to stay away from work.

ASIA – On Wednesday Beijing reported 21 new cases of infections from abroad, mainly people traveling from Spain and Great Britain. Beijing infections accounted for most of the 34 new cases imported into mainland China. The total number of confirmed cases in mainland China is 80,928, with the overall death toll at 3,245 at the end of Wednesday, up eight from the previous day. There were eight new deaths in Hubei, with Wuhan counting six.

– Hubei Province will transfer all arrivals from abroad to a central quarantine facility for 14 days.

Taiwan has said it will ban entry for most foreigners as its tally has increased by 23 to 100 on Wednesday, most of whom are imported.

– Thousands of Muslim pilgrims from all over Asia gathered in Gowa in Indonesia, just two weeks after a similar event in Malaysia caused more than 500 infections. on Thursday. On Wednesday, the Southeast Asian nation saw its largest daily jump of 55 infections, making a total of 227 cases.

Indonesia’s death toll jumped Wednesday from five to 19 and Malaysia warned of a “tsunami” of cases if people followed no new restrictions when infections rose in Southeast Asia.

– The capital of Vietnam, Hanoi, advised its residents to insulate themselves at home until at least the end of March. The country confirmed 76 virus cases, ten of which emerged Wednesday. In India, where 147 coronavirus cases were confirmed, authorities canceled nearly two dozen long-distance rail services on Tuesday. A total of 276 Indians have tested positive for coronavirus abroad and 255 of them are currently in Iran.

Bangladesh confirmed its first mortality from the disease on Wednesday, while the total of confirmed cases rose to 14.

Pakistan on Wednesday confirmed its first two coronavirus deaths while the total number of infected patients in the country rose to 260. Sri Lanka, which recorded 51 coronavirus cases, said it will ban all incoming flights to two weeks from Wednesday.- Australia stated Thursday that all non-citizens and non-residents will be barred from entering the country from 9:00 pm (1000 GMT) on Friday. The country has registered around 600 coronavirus infections and six deaths. New Zealand has closed its borders to all foreigners since midnight Thursday. So far it has confirmed 28 coronavirus cases.

MIDDLE EAST AND AFRICA

– The World Health Organization said that Middle Eastern states urgently need to offer more information on cases.

Iran’s death toll for coronavirus has risen to 1,135 on Wednesday with 147 new deaths in the past 24 hours, while the total number of infected people across the country has reached 17,361.

– The UAE has said it would ban foreign visitors while Saudi Arabia has suspended most jobs in its private sector.

– Djibouti and Zambia confirmed their first cases on Wednesday.

– Morocco has asked its citizens not to leave the house except to buy basic necessities, seek medical treatment or go to work.

ECONOMIC FALL

– The dollar rose and everything else was blown away on Thursday as central bank emergency measures in Europe, the United States and Australia failed to stop a new wave of panic sales. [MKTS/GLOB]

– Crude oil traders from West Africa to the Gulf Coast of the United States are offering goods with big discounts, desperately trying to attract buyers as global supplies swell and demand plummets. – The Australian central bank and government announced Thursday support packages that will bring about $ 100 billion ($ 56 billion) to the economy.

– The coronavirus pandemic could destroy up to 25 million jobs worldwide if governments didn’t act quickly, the International Labor Organization said.

– Ford, General Motors and Fiat Chrysler will close their US plants, bowing to pressure from the union which represents around 150,000 hourly workers in those facilities, sector officials said.

– The central bank of Nigeria will inject 1 trillion naira ($ 3.27 billion) into local production and replacement of imports to stimulate the economy.

– The Mexican central bank said it would hold a $ 2 billion currency auction later in the day after the peso hit an all-time low.

– Colombia will spend 14.8 trillion pesos (3.65 billion dollars) in emergency measures, but will not take on debt to finance the expense.

– Italy is preparing to defend strategically important companies from foreign acquisitions at a time when buyers could benefit from the slump in share prices.

– Banks borrowed more than $ 15 billion on Wednesday from the Bank of England’s US dollar repurchase agreements, the largest sum since the financial crisis.

South Korean President Moon Jae-in on Thursday pledged $ 50 trillion ($ 39 billion) in small business emergency funding and other incentive measures.

EVENTS

– The Eurovision music competition, one of the largest television events in the world, will not take place this year.

FILE PHOTO: A coronavirus patient arrives on a stretcher at Columbus Covid Hospital, which has been assigned as one of the new hospitals for the treatment of coronavirus in Rome, after being transferred by health workers in white protective suits from Gemelli hospital, in Rome , Italy, 16 March 2020. Photo taken on 16 March 2020. Gemelli / Handout Hospital via REUTERS

– The Glastonbury Festival in Britain, the largest greenfield music festival in the world, has been canceled.

– Formula 1 teams must close for three weeks by the end of April, with a move that will allow them to reschedule the races during the European summer.

Worldwide, doubts arise that the Olympics can proceed as planned in the coronavirus pandemic, but the Tokyo Games and Japanese government officials insist that the event will go ahead as expected.

Compiled by Amy Caren Daniel and Ramakrishnan M. Curated by Arun Koyyur and Anil D’Silva

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South Korea warns of global credit crunch as rising dollar hits emerging markets

SEOUL (Reuters) – South Korea warned Thursday of a possible global credit crunch as financial market outages caused by the coronavirus pandemic trigger a large bond selloff and a fight for dollar funding in emerging markets.

Deputy Finance Minister Kim Yong-beom has promised to implement measures to alleviate volatility in the wild market, as the KRW won = slipped a further 3 percent against the dollar on Thursday to reach a minimum of a decade.

Most other Asian emerging market currencies also slipped, with the Indonesian rupee IDR = sung at its weakest level since 1998.

At an emergency policy meeting, Kim said that the costs of obtaining US dollars and capital outflows from the stock markets of emerging economies could mean that the world could be heading towards a global credit crunch.

“It’s not just a problem for us (Korea), but foreign investment is flowing out of the country through emerging markets and adding pressure to the equity and FX markets,” said Kim.

South Korea will support local companies’ dollar financing needs and has promised to inject funds into the local bond market if necessary, he added.

Comments come after the government on Wednesday loosened one of its key capital flow rules to inject more dollars into its banking system to ensure that businesses have enough greenbacks to overcome a financial crisis unconditionally.

The Bank of Korea was working in tandem. He held a $ 1 trillion ($ 783.5 million) repo auction on Thursday morning to add new capital to local brokers.

The auction attracted orders for almost double the amount offered, suggesting strong demand for liquidity support in the financial sector.

The global security flight took the KRW = to a 10-year low and the Bank of Korea was suspected of selling dollars Thursday morning to slow its decreases as it approached 1,260 wins per dollar.

The Korean exchange said Thursday that circuit breakers were activated on the KOSPI .KS11 benchmark after plummeting more than 8%. The index is expected to record its sharpest daily drop since late 2008.

According to Refinitiv data, yields on South Korean Treasury securities increased drastically across the board with the panic spread, with the 10-year benchmark yield rising 11.5 basis points from 0250 GMT to 1.613%.

Reporting by Cynthia Kim and Choonsik Yoo; Curated by Shri Navaratnam and Kim Coghill

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Money is king because the emergency stimulus cannot stop the market panic

SINGAPORE (Reuters) – The dollar rose and everything else was blown away on Thursday as central bank emergency measures in Europe, the United States and Australia failed to stop a new wave of panic sales.

FILE PHOTO: Pedestrians wearing face masks look at an electrical panel showing the Japanese Nikkei and Nasdaq US stock averages outside a mediation in a business district in Tokyo, Japan, January 30, 2020. REUTERS / Kim Kyung-Hoon

“There are no buyers, there is not a lot of liquidity and everyone is getting out of it,” said Chris Weston, research manager at the Melbourne Pepperstone brokerage. Stocks, bonds, gold and commodities have fallen as the world struggles to contain coronavirus and investors and businesses are rushing to find money.

US equity futures EScv1 were one step away from the session limits. The growth-sensitive Australian dollar was reduced by 4% to a low of over 17 years.

Almost all Asian stock markets have been closed and breakers have been hit in Seoul, Jakarta and Manila. Traders have reported huge tensions in the bond markets as the troubled funds have sold any liquid assets to cover equity losses and investors’ redemptions.

Benchmarks 10-year sovereign bond yields in Australia, New Zealand, Malaysia, Korea, Singapore and Thailand have risen as prices have plummeted. Gold XAU = 1% drop and copper touched its lower limit in Shanghai.

MSCI’s largest index of Asia-Pacific equities outside Japan .MIAPJ0000PUS fell 5% to a four-year low, with losses from Korea and Hong Kong.

The Nikkei .N225 lost almost 1%, the ASX 200 almost 3%, while the Kospi .KS11 lost 8% and the Hang Seng 5%.

“We are in this phase where investors are only trying to liquidate their positions,” said Prashant Newnaha, senior interest rate strategist at TD Securities in Singapore.

In the meantime, the virus outbreak has worsened. Italy reported the largest one-day increase in the coronavirus death toll since Wednesday since the outbreak began in China in late 2019.

It has killed more than nearly 9,000 people worldwide, infected over 218,000 and resulted in emergency blockages on a scale not seen in living memory.

J.P. Morgan predict that the US economy will decline by 14% in the next quarter, and the Chinese economy will drop by more than 40% in the current one, one of the most terrible calls on the scale of relapses.

“There is no longer any doubt that the longest global expansion recorded will end this quarter,” they said in a statement. “The problem with the key perspectives now is to measure the depth and duration of the 2020 recession.”

Investors will analyze weekly US unemployment data expected at 1230 GMT and in the weeks ahead to assess the depth of the layoffs.

SELL EVERYTHING

The selloff followed the attempt to stabilize in morning trade, with the ECB’s commitment to buy 750 billion euros ($ 820 billion) in bonds until 2020 offering some support.

In the afternoon, the US Federal Reserve promised a liquidity mechanism for money market mutual funds.

The Reserve Bank of Australia also reduced interest rates to a minimum of 0.25% and announced a historic foray into quantitative easing after an off-cycle meeting.

But as with the massive stimulus measures already announced by central banks around the world, it offered a small glare to the terrible sentiment.

“It’s about the impact on demand and the disruption of the global supply chain … it’s not talking directly about the key problem for the markets,” said Michael McCarthy, chief market strategist of CMC Markets brokerage in Sydney.

In currency markets, everything except the dollar and the euro have collapsed. GBP in Sterling = decreased by 1% to $ 1.1490. The yen was down 1% to $ 109.16 per dollar. The New Zealand and Australian dollars each fell by over 4%.

10-year US Treasury US10YT = RR, usually a turbulent paradise, rose during the session after their most intense two-day sell-off in nearly 20 years on Tuesday and Wednesday.

Oil stabilized after an overnight dip to an 18-year low in Asian trade, with US crude CLc1 lasting 6.5% at $ 21.70 and Brent LCOc1 34 cents at $ 25.22.

“At this point I would say that the market is not investable,” said Daniel Cuthbertson, CEO of Value Point Asset Management in Sydney. “Until we have a containment of global contractions, the market will simply be without direction.”

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Global stocks collapse when investors flee the risk of coronavirus fears

TOKYO (Reuters) – Global stock futures and Asian equities slumped in unstable trade on Wednesday as concerns about the coronavirus pandemic eclipsed hopes that broad political support could combat the economic consequences of the outbreak.

Most traditional safe haven activities were also under pressure as battered investors sought to dissolve their damaged positions, leading to large discrepancies between the various markets.

Futures on Euro Stoxx 50 fell 4.5%, with a decline in European equity markets.

In Asia, the broader MSCI index of Asia-Pacific equities outside Japan fell 1.4% to a minimum compared to the end of 2016, driven by a 6.4% drop in Australia. The Japanese Nikkei canceled its first gains to drop 0.2%.

US equity futures fell 3.7% in Asia, falling to the daily limit outside US trade, one day after the S&P 500 rose 6% and Dow Jones rose 5.2% or 1,049 points.

“A 1,000 point increase in Dow is something you only see during a financial crisis. It’s not a good sign, “said Tomoaki Shishido, senior fixed income strategist at Nomura Securities.

“A 100 point increase would be much better for the economy.”

The strong price fluctuations left market participants with losses of assistance, making them reluctant to return to the market and thus reducing the volume of trades.

The rise in Wall Street quotas the previous day came when politicians put together packages to counter the impact of the virus.

The Trump administration unveiled a $ 1 trillion stimulus package on Tuesday that could deliver $ 1,000 checks to Americans within two weeks to support a coronavirus-affected economy as many other governments look to the fiscal stimulus.

“It would be bigger than a $ 787 billion package that the Obama administration invented after the Lehman crisis, so in size it is quite large,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

“However, stock markets are likely to remain limited by concerns about the spread of coronavirus,” he said.

Britain has unveiled a £ 400 billion ($ 400 billion) bailout package for businesses threatened with collapse while France is about to pump € 45 billion ($ 50 billion) of crisis measures into its economy to help businesses and workers.

However, bank meteorologists are projecting a sharp economic downturn at least in the second quarter as governments take draconian measures to fight the virus, close restaurants, close schools and invite people to stay home.

The U.S. Federal Reserve stepped in again on Tuesday to ease financial stress among companies by reopening its commercial paper financing instrument to take out short-term corporate loans.

“While the markets react to the positive news on the stimulus, it doesn’t last long. I think there are many banks and investors whose balance sheet has been severely hit and who still have many positions to sell,” said Shin-ichiro Kadota, senior strategist of currencies and rates at Barclays.

BONDS AND CURRENCIES

The damage to the markets was also evident in the bond markets.

US Treasuries hardly recovered from Tuesday’s big losses when the 10-year yield hit a two-week high of 1.105%. Last time it stood at 0.999%.

“The surprising thing is that bonds have gone down even though the Fed has purchased $ 40 billion in bonds every day. This far surpasses previous episodes of quantitative easing by the Fed and shows how much sales pressure there is now, “said Nomura’s Shishido.

Some market players said that talking about a major stimulus is raising concerns about the long-term outlook for U.S. fiscal health, putting pressure on long-term U.S. government bonds.

The spread between 30 and 5-year yields has risen to nearly 1%, the highest since September 2017. US 30-year bonds have a yield of 1.620%.

In the currency market, the dollar shrank due to signs that central bank measures were beginning to ease some of the pressure on financing, but still maintained most of its huge overnight gains to raise fears about coronavirus crisis.

The Australian dollar returned to $ 0.6019 after hitting a 17-year low of $ 0.5958 the previous day.

FILE PHOTO: a passer-by wearing a protective mask, following a coronavirus outbreak, passes in front of an electronic card showing the graphs of the recent movements of the Japanese average of the Nikkei outside a mediation in Tokyo, Japan, March 6 2020. REUTERS / Issei Kato

The kiwi recovered to $ 0.5961 after hitting an 11-year low of $ 0.5919.

The dollar lost 0.6% against the yen at 107.00 yen while the euro remained stable at $ 1.1004.

U.S. oil futures collapsed close to their 2016 depression of around $ 26 a barrel due to concerns over demand and a price war instigated by the Saudis. They stayed at $ 26.51, down 1.63%.

Editing by Jane Wardell and Himani Sarkar

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