Ongoing coronavirus epidemic became a major problem for the stock exchanges. Governments around the world started to impose strict measures to contain the virus. For example, on a typical day, hundreds of people either work or visit the buildings where stock exchanges are located in New York, London, Tokyo, etc. In this situation, stock exchanges have to find the optimal solution.
Investors, as well as analysts, are trying to analyze as much information as possible. However, nobody knows for sure how the epidemic will affect the global economy in the long run.
For instance, the Phillippine Stock Exchange made the decision to suspend trading. The stock exchange wants to ensure the safety of employees as well as traders. Two days ago, the benchmark PSE Composite Index slipped almost 8%
Stock exchanges in Asia
On March 17, markets were mixed as the U.S. stock indexes experienced their biggest day drop in three decades overnight.
Australia’s S&P/ASX 200 closed 5.83% higher at 5,293.40. On March 16, the S&P/ASX 200 plummeted almost 10%.
However, mainland Chinese stocks fell on Tuesday. The Shanghai Composite dropped 0.34% to around 2,779.65. In the meantime, the Shenzhen composite fell 0.425% to approximately 1,704.74.
Interestingly, Hong Kong’s Hang Seng index rose 0.61% as of its final hour of trading. It is important to keep in mind that the Hong Kong Stock Exchange is the third-largest exchange when it comes to market capitalization. Also, it is the fourth single largest stock market in the world.
Let’s have a look at the Japanese stocks, the Nikkei 225 closed slightly higher at 17,011.53. Topix index added 2.6% to end its trading day at 1,268.46.
However, South Korea’s Kospi index dropped 2.47% to 1,672.44.
Several days ago, the Federal Reserve announced a massive monetary stimulus. Several central banks in Asia also decided to support the economy. This way they want to address the problems created by the virus.