On Monday, stock across the Asia Pacific region fell, as the coronavirus outbreak continues to influence the investor sentiment. Coronavirus outbreak started several months ago but is far from being over. Moreover, doctors, as well as authorities, are unable to say for how long the outbreak will continue to spread around the world.
In this situation, stocks are struggling to cope with the new reality. Several months ago, it was hard to imagine that coronavirus would become the most serious challenge to the global economy. However, at the moment governments are working round the clock to soften the impact of the outbreak. They plan to spend billions of dollars to stabilize the situation. However, it may not be enough to avoid a recession.
Stocks in the Asia Pacific and the outbreak
Unfortunately, it was another turbulent day for the stocks. In India, Nifty 50 fell 12.98% to close at 7,610.25. Moreover, another Indian index BSE Sensex ended its trading day 13.15% lower at 25,981.24. Also, both indexes suspended trading for a while after the Sensex index fell 10%, triggering a circuit breaker.
Australia’s S&P/ASX 200 dropped 5.62% to close at 4,546.00.
Singapore is the financial hub. On Monday, the Straits Times Index fell 7.35% to close at 2,233.48.
South Korea’s Kospi index also experienced problems, the index declined 5.34% to end its trading day 1,482.46.
Hong Kong’s Hang Seng index fell 4.82% to close at 21,696.13.
In Japan, the Nikkei 225 index defied other stocks in the region and gained 2.02% to close at 16,887.78. Another Japanese index Topix also strengthened its position. Its index added 0.68% to end its trading day at 1,292.01.
The Federal Reserve reduced the interest rates and intervened to stabilize the debt markets. However, due to the ongoing situation, stocks in Asia declined as coronavirus continues to spread across the globe. It will take time to reassure investors.