Asian stocks sink after IMF says global economy will shrink

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Asian stocks skidded Wednesday after the International Monetary Fund said the global economy will suffer its worst year since the Great Depression of the 1930s due to the coronavirus pandemic.

Benchmarks in Shanghai, Tokyo, Hong Kong and Sydney declined despite Wall Street's overnight gain driven by buying of technology stocks. India advanced.

The Shanghai Composite Index lost 0.5% to 2,812.23 and the Nikkei 225 in Tokyo declined 0.5% to 19,550.09. Hong Kong's Hang Seng was off 0.7% at 24,260.90. Johnson & Johnson climbed 4.5% after reporting a stronger profit for the first three months of the year than Wall Street expected. It raised its dividend, bucking a trend as companies try to conserve cash, even though the health care giant also had to slash its outlook.

The discussions follow signs the outbreak may be levelling off in some of the hardest-hit areas, including New York City. China has reopened factories, shops and other businesses after declaring victory over the outbreak while the United States and Europe still are tightening controls. Still, forecasters say it will be months before Chinese industries return to normal output and exporters will be hurt by depressed global demand.

 

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Sink? Japan is off less than 0.5% while China is down less than 0.7%. Wouldn't call that sinking....

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 /  🏆 1. in JP

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