Travel restrictions imposed by the Chinese authorities during the Lunar New Year changed the plans of many passengers. Moreover, the aviation industry experienced problems due to coronavirus outbreak. Meanwhile, stocks declined across the region.
Shares of airline stocks in the region declined on January 28. South Korea’s Korean Air Lines dropped 6.69%. In the meantime, Australia’s Qantas Airways fell 5.22%.
Moreover, shares of Singapore Airlines dropped 2.95%. Moreover, Japan also experienced problems on January 28. Shares of Japan Airlines fell 0.38%.
Stock markets and new challenges
On Tuesday, South Korea’s Kospi index fell by 3.09% to close at 2,176.72.
In Japan, the Nikkei 225 fell 0.55% to close at 23,215.71. Another Japanese index Topix also declined on Tuesday. Its index fell 0.6% to end its trading day at 1,692.28.
Meanwhile, shares in Australia fell on January 28. The S&P/ASX 200 declined by 1.35% to 6,994.50.
The Strait Timex index in Singapore also fell by 2.17% in afternoon trade.
Markets in China and Hong Kong were closed on Tuesday due to the Lunar New Year.
According to Chinese health authorities, the coronavirus outbreak killed 106 people and infected 4,515.
The ongoing situation would have a negative impact on the Chinese economy. Travel as well as tourism sectors are already suffering due to the outbreak. The coronavirus outbreak coincided with Lunar New Year. Usually, millions of people are traveling across China to spend time with their families. However, this year’s outbreak changed the plans for a lot of people.
Furthermore, the lack of Chinese tourists would affect other countries as well. For example, Australia is a very popular destination among Chinese citizens.
It is too early to calculate the financial losses, but the ongoing situation indicates that companies will lose millions of dollars due to the coronavirus outbreak. Stock markets across Asia suffered as the virus continues to spread in China and abroad.
COMMENTS