Stocks across Asia are struggling to deal with the current situation. Markets in many Asian countries declined on Monday.
However, mainland Chinese stocks were able to recover from their earlier slip and strengthened their positions. For example, the Shanghai composite gained 0.51% to about 2,890.48. Meanwhile, another stock index, which is the Shenzhen component also has a positive day. Its index added 1.1% to 10,728.46.
The Shenzhen composite jumped 1.215% to around 1,757.26.
In Hong Kong, the Hang Seng index fell by 0.07% as of its final hour of trading. Coronavirus fears had a negative impact on the Hotspot stocks. Moreover, shares of Haidilao declined by 4.06% whereas Xiabuxiabu Catering Management dropped 6.07%.
As mentioned above, stock markets experienced problems on Monday. In Japan, the Nikkei 225 fell by 0.06% to close at 23,685.98. At the same time, the Topix index declined by 0.72% to end its trading day at 1,719.64.
South Korea’s Kospi index also declined on February 10. Its index fell by 0.49% to close at 2,201.07.
Supply chains and markets
On Monday, some of the factories reopened while many remain closed due to ongoing circumstances. As many factories are not working this would affect the supply chains as companies are unable to receive the necessary parts.
Moreover, quarantines and other measures could disrupt the manufacturing sector this year.
It is important to keep in mind that Hubei province is one of the major manufacturing hubs of China. Due to the coronavirus outbreak, the government had to close the factories to contain the virus.
Furthermore, most Asian economies import 20-30% of their intermediate goods from China. Thus, a lot of companies depend on products that are imported from China. Many famous companies such as Foxconn, are trying to deal with current problems.
In this situation, markets are suffering as the world’s major industrial hub is trying to limit the spread of the virus.