Coronavirus crash wipes US$5 trillion off world stocks

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Coronavirus panic sent world share markets crashing again on Friday, compounding their worst week since the 2008 global financial crisis and ...

LONDON: Coronavirus panic sent world share markets crashing again on Friday, compounding their worst week since the 2008 global financial crisis and bringing the wipeout in value terms to US$5 trillion.

"Investors are trying to price in the worst case scenario and the biggest risk is what happens now in the United States and other major countries outside of Asia," said SEI Investments Head of Asian Equities John Lau. Wall Street shares had plunged 4.4per cent on Thursday alone which was its largest fall since August 2011. They have now lost 12per cent since hitting a record high just nine days ago, driving into so-called correction territory.

"The coronavirus now looks like a pandemic. Markets can cope even if there is big risk as long as we can see the end of the tunnel," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.World Health Organization Director General Tedros Adhanom Ghebreyesus said the virus could become a pandemic as the outbreak spreads to major developed economies such as Germany and France.

The CSI300 index of Shanghai and Shenzhen shares dropped 2.9per cent, on track for its first weekly loss in three.

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