Private as well as governmental organizations are working around the clock to limit the economic impact of the pandemic. Two days ago, U.S President Donald Trump ordered to suspend all travel from Europe to the U.S. for 30 days. This decision had a dramatic impact on the stocks, along with the decision of the World Health Organization.
Also, Donald Trump announced that he would ask Congress to provide payroll tax relief, as well as measures for several groups impacted by the virus.
Shares of airlines in the Asia Pacific fell as airlines had to deal with this news. Australia’s Qantas Airways fell 9.9%. Furthermore, shares of two major Japanese companies also experienced problems. For instance, ANA holdings dropped 5.63%, and Japan Airlines fell 7.03%.
Also, shares of Korean Air dropped 4.62%. The coronavirus epidemic is a major challenge for stocks.
Stocks in Asia and various factors
On March 12, stocks across Asia fell sharply due to two major factors. The first one was the Dow Jones Industrial Average, and the second one was the World Health Organization (WHO), more precisely its decision. The WHO declared the coronavirus outbreak a global pandemic.
In Japan, the Nikkei 225 fell 4.41% to close at 18,559.63, leaving it in a bear market. Moreover, the Topix index dropped 4.13% to end its trading day at 1,327,88.
Hong Kong’s Hang Seng index dropped 3.52% as of its final hour of trading.
Unfortunately, South Korea’s Kospi index fell 3.87% to close at 1,834.33.
Australia’s S&P/ASX 200 dropped 7.36% to close at 5,304.60.
Mainland Chinese stocks had a bad day, as the stock indexes fell on Thursday.
The Shanghai Composite fell 1.52% to around 2,923.49. At the same time, the Shenzhen component dropped 2.31% to 10,941.01.
Meanwhile, the Shenzhen composite fell 2.196% to approximately 1,818.456.
It will take time to analyze the problems caused by the outbreak and how it will affect the global economy in the long run.