Asian stocks fall amid growing fear of a pandemic

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Asian stocks slide deeper as pandemic fears grow

Traders work through the closing minutes of trading Tuesday on the New York Stock Exchange floor on February 25 2020 in New York City, the US. Picture: GETTY IMAGES/AFP/SCOTT HEINS

China accounts for about 96% of cases and has instituted dire containment methods that have paralysed global supply chains. But most new infections are now being reported elsewhere, with news on Thursday of a jump in cases in South Korea accompanied by a warning that the virus may be spreading in California.

“The market was complacent until last week as central banks and governments were at the rescue,” said Desh Peramunetilleke, head of microstrategy at Jefferies in Hong Kong. Fresh record-low yields on benchmark 10-year US Treasuries overnight, and the morning’s firm demand for dollars, yen and Swiss francs underscored the worried mood.

Capital Economics now expects Chinese growth to contract this year. “The economic risks from extended disruption are non-linear,” Capital’s chief Asia economist and its senior China economist, Mark Williams and Julian Evans-Pritchard said in a note.

 

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