TOKYO - Stocks in Asia markets that were open on Monday tumbled along with crude oil, while havens including the yen and Treasuries jumped, as fears deepened about the rising impact of the deadly coronavirus.Contracts on the S&P 500 Index fell more than 1 per cent before paring losses and Japan's Nikkei index sank 1.84 per cent. Futures on Chinese shares fell more than 5 per cent and the offshore yuan hit its lowest level this year as the country extended its Lunar New Year holiday.
"I'm starting to think cash is the right place to be for the next few weeks," Stephen Innes, chief Asia market strategist at Axitrader, wrote in a note on Monday."Any economic shock to China's colossal industrial and consumption engines will spread rapidly to other countries through the increased trade and financial linkages associated with globalization."
Chinese holidaymakers - many on group tours - spent almost US$18 billion in Thailand last year, more than a quarter of all foreign tourism receipts, government data show. The industry as a whole contributes 21 per cent to gross domestic product, according to the World Travel & Tourism Council. The virus news is coinciding with an earnings season in full swing. Apple, Facebook and Samsung are among those due to report this week. Investors will also have a Federal Reserve policy meeting and Mark Carney's last monetary policy decision as the Bank of England's governor to monitor.
"We're ready to take more steps if things escalate," Anutin said."We won't hesitate as the health of the Thai people is our priority. The potential economic impact won't outweigh the safety of our people."