Concern the outbreak will develop into something akin to the SARS pandemic of 2003 halted a seven-week rally in emerging markets in the five days through Friday, and continued to weigh on currencies, stocks and bonds on Monday.
The offshore yuan slid to the weakest level this year and neared 7 per dollar, while a China-focused exchange-traded fund in Europe plunged 6%, poised for its biggest decline since May. "The Wuhan coronavirus outbreak has the potential to whipsaw Chinese equities and, indeed, all global risk assets, ” said Seema Shah, chief strategist at Principal Global Investors in London.
As traders weigh the impact of the virus on Chinese businesses and consumption, the non-manufacturing reading of the nation’s purchasing managers’ index may offer early signs of its effects on the service sector.