Officials in China as well as in other parts of the world introduced strict measures to contain the epidemic. China’s economy was slowing down even before the coronavirus. However, the ongoing crisis created even bigger issues for the local economy. Stock markets in Asia and across the world have to cope with various problems. The current situation became the biggest challenge for stocks.
Coronavirus created too many problems for the stocks. It won’t be easy to overcome all the issues connected with the epidemic.
U.S. Federal Reserve and stocks
Two days ago, the U.S. Federal Reserve made the decision to cut its target interest rate to zero.
Nevertheless, this decision was not enough to improve market sentiment.
On Monday, the S&P/ASX 200 in Australia suffered as the subindex fell 9.7% to close at 5,002. It is important to mention that it was its largest daily drop.
Moreover, at one point, the financial subindex dropped as much as 11.1% as shares of the major banks declined.
For instance, shares of Australia and New Zealand Banking Group fell 12.5%.
Also, shares of Commonwealth Bank of Australia fell 10.01%. At the same time, shares of Westpac declined 11.81%.
Furthermore, shares of National Australia Bank fell 12.44%.
Mainland Chinese stocks also had a bad day. The Shanghai Composite fell 3.4% lower at about 2,789.25.
Meantime, the Shenzhen composite dropped 4.834% to
approximately 1,712.02. Moreover, the Shenzhen component fell 5.34% to 10,253.28.
In Hong Kong, the Hang Seng index dropped 4.38% as of its final hour of trading.
In Japan, the Nikkei 225 fell 2.46% lower at 17, 002.04. Also, the Topix index dropped 2.01% lower to end its trading day at 1,236.34.
South Korea’s Kospi index fell 3.19% to close at 1,714.86.
Unfortunately, the main question is how the global economy will be able to cope with immense pressure and coronavirus is far from being over.