Stocks in Taiwan slumped 5% on Thursday, leading a selloff in Asia as investors returned from the Lunar New Year holiday to face mounting concerns the spreading coronavirus outbreak.
Fed chief Jerome Powell said Wednesday that the U.S. economy is in good shape, in announcing that the central bank left unchanged a key interest rate that influences borrowing costs. But he also said the Fed is closely monitoring the severity of the deadly coronavirus and the potential for the illness to disrupt the global economy.
Chinese authorities on Thursday said more than 7,700 people have fallen victim to the virus, with at least 170 dead. World Health Organization officials expressed “great concern” of the virus’ spread outside of China. A U.N. panel is expected to meet Thursday to weigh if the outbreak should be declared a global emergency, the Associated Press reported.
Markets in mainland China remained closed for the Lunar New Year holiday, but Taiwan’s Y9999, -5.75% benchmark reopened with heavy losses, and the index slumped 5.7%, marked by a 10% drop for Apple manufacturer Hon Hai Precision Industry, better known as Foxconn 2354, -9.26%.
Japan’s Nikkei NIK, -1.72% fell 1.7% and Hong Kong’s Hang Seng Index HSI, -2.27% dropped 2.3%, while South Korea’s Kospi 180721, -1.71% fell 1.5%. Samsung 005930, -3.21% dropped over 3% in South Korea after posting a nearly 40% drop in quarterly net profit.
Singapore STI, -0.51% , Indonesia JAKIDX, -0.58% and Malaysia FBMKLCI, -0.22% indexes declined. Australia’s S&P/ASX 200 XJO, -0.33% dipped 0.5%.
Semiconductor-equipment maker Advantest 6857, -6.44% sank in Tokyo trading, along with Casio 6952, -4.51% and Canon 7751, -5.30% . Apple component makers AAC 2018, -6.84% and Sunny Optical 2382, -6.50% fell in Hong Kong, where Sands China 1928, -4.49% and Wharf Real Estate 1997, -4.23% dropped as well.
“It’s going to be challenging to put concerns over the coronavirus to one side, but fortunately for risk, the robust data in the U.S. should at least be able to keep risk a wobbly but even keel,” wrote Stephen Innes, chief market strategist at AxiTrader.
On the heels of a steady session, U.S. stock futures pointed to a weaker session on Thursday, with futures for the Dow Jones Industrial Average YM00, -0.55% , S&P 500 ES00, -0.58% and Nasdaq-100 NQ00, -0.51% all fell around 0.5% each.
Benchmark crude oil CLH20, -1.05% fell 1% to $52.80 a barrel. Brent crude oil BRNH20, -1.09% , the international standard, fell 1% to $59.22.
The dollar USDJPY, -0.09% slipped to 108.92 Japanese yen from 109.21 yen on Wednesday.
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