Stocks crash amid sweeping pandemic panic

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Australia, South Korea and Hong Kong slide as Dow posts worst drop since 1987

Singapore — Global stock markets crashed on Friday, ending a years-long bull run, with coronavirus panic selling hitting almost every asset class and leaving investors nowhere to hide.

Losses were equally staggering outside Japan, driving MSCI’s broad Asia-Pacific index back to where it was in 2017. Gold and oil fell and once-safe sovereign bonds slumped as investors liquidated everything they could to cover losses. Australia’s benchmark fell as far as 8% and is set for its worst week on record. In South Korea the won was shredded and the Kospi fell 7.7%.In currency markets the dollar was king and Asian currencies haemorrhaged as fears of systemic risks drove demand for the world’s reserve currency.

Traders were disappointed after hoping to see broader measures to fight the spread of the virus and blunt its expected blow to economic growth. The VIX volatility index — Wall Street’s “fear gauge” — and an equivalent measure of volatility for the Euro Stoxx 50 hit their highest since the 2008 financial crisis.

 

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