Stocks Fall as Coronavirus Spread Accelerates Outside China
February 24 2020 - 3:05AM
Dow Jones News
By Chong Koh Ping
Global stocks fell as investors grappled with the potential
economic fallout from mounting coronavirus infections in South
Korea and other countries outside China.
In South Korea, which reported its seventh death from the
coronavirus, the benchmark Korea Composite Stock Price Index
tumbled 3.9% on Monday. That was the Kospi's biggest one-day fall
since 2018, according to FactSet.
U.S. S&P 500 futures dropped 1.6%, pointing to another
likely decline for that index, which slid 1.1% on Friday.
South Korea on Sunday raised its infectious-disease alert to
red--the highest level--for the first time since the H1N1 swine flu
outbreak in 2009. Coronavirus infections jumped over the weekend,
and confirmed cases now stand at 763--more than half in the
southwestern city of Daegu.
"This could serve as a 'wake-up' call for Japan and other Asian
economies, which are vulnerable against the impact of the virus,"
said CMC Markets analyst Margaret Yang. "This will also put the
hosting of Tokyo Summer Olympic Games under scrutiny, as Japan now
has the highest number of infections outside of China alongside an
aging population."
South Korean tech giant Samsung Electronics lost 4.1% and auto
maker Hyundai Motors shed 4.3%. Elsewhere in Asia, stock benchmarks
in Hong Kong and Singapore fell 1.8% and 1.2%, respectively. The
Shanghai Composite in China dipped 0.3%.
In Australia the S&P/ASX 200 index declined 2.3%. Markets in
Japan were closed Monday.
Safe haven gold jumped 1.6% to more than $1,670 an ounce on
Monday, its highest in seven years. Increased demand for U.S.
Treasurys pushed yields, which move inversely to prices, on the
10-year note down 0.05 percentage point to 1.42%.
"The rally of haven assets such as gold reflects surging demand
for safety during a time of uncertainty. Things will probably get
worse before it gets better," said Ms. Yang.
Write to Koh Ping Chong at chong.kohping@wsj.com
(END) Dow Jones Newswires
February 24, 2020 03:50 ET (08:50 GMT)
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