A man walks in front of a screen showing today's movements of Nikkei share average outside a brokerage in Tokyo June 2, 2016. — Reuters pic
HONG KONG, Jan 30 — Asian markets fell today with tech stocks and airlines among key losers as the World Health Organisation called an urgent meeting on whether to declare a global health emergency over the new virus which has killed 170 people in China.
The WHO, which initially downplayed the severity of the disease, warned all governments to be “on alert” as China reported 1,700 new cases of the SARS-like virus which has infected 7,700 people and been detected in at least 15 countries.
Airlines around the world are either suspending or paring back services in and out of China following cases of human-to-human transmission outside the country and manufacturers have also been cutting their Chinese operations.
US Federal Reserve Chairman Jerome Powell said the coronavirus posed a new risk to growth in China and elsewhere.
In Asian stock markets, Taipei closed down 5.8 per cent in the first day of trade after the Chinese New Year break, with Eva Airways plunging 9.9 per cent and market heavyweight and key Apple supplier Taiwan Semiconductor Manufacturing (TSMC) sliding five per cent.
Fellow Apple supplier Hon Hai Precision Industry fell by the daily limit 10 per cent after it said most of its manufacturing plants in China would remain closed until February 10.
The tech giant, better known as Foxconn, is the world’s biggest contract electronics maker and assembles Apple’s iPhones as well as gadgets for other international brands.
The move will likely impact global supply chains for tech companies that rely on the Taiwan firm to manufacture everything from iPhones to flat-screen TVs and laptops.
Foxconn, which employs more than one million workers in China, accounts for the most US-bound exports by volume from Hubei province which is at the epicentre of the virus outbreak.
Tokyo closed down 1.7 per cent and Hong Kong retreated 2.8 per cent in afternoon trade.
Japanese automaker Toyota said it would keep its plants in China closed until at least February 9 over concerns about the outbreak which has killed 170 people and infected more than 7,700.
Among other markets, Seoul slipped 1.7 per cent, Singapore retreated 0.8 per cent and Sydney was down 0.3 per cent.
“Equity markets remain acutely vulnerable to adverse developments in the Wuhan virus situation,” said OANDA analyst Jeffrey Halley.
Uncertainty
The Fed held its policy interest rate steady on Wednesday but was on alert for possible contagion to the domestic and global economies.
“There will clearly be implications at least in the near term for Chinese output and I would guess for some of their close neighbours,” Powell told reporters following the Fed’s policy meeting.
However, “the situation is really in its early stages and it’s very uncertain about how far it will spread and what the macro-economic effects will be,” he said. “We are very carefully monitoring the situation.”
Oil fell following a higher-than-expected jump in US inventory, with the Brent and WTI contracts both down 1.5 per cent.
Key figures around 0745 GMT
Hong Kong — Hang Seng: DOWN 2.8 per cent at 26,402.01
Tokyo — Nikkei 225: DOWN 1.7 per cent at 22,977.75 (close)
Shanghai — Composite: Closed for a public holiday
New York — DOW: UP less than 0.1 per cent at 28,734.45 (close)
London — FTSE 100: UP less than 0.1 per cent at 7,483.57 (close)
Euro/dollar: UP at US$1.1011 from US$1.1005 at 2200 GMT
Pound/dollar: DOWN at US$1.3011 from US$1.3013
Euro/pound: UP at 84.68 from 84.57 pence
Dollar/yen: UP at 108.84 from 105.04
Brent Crude: DOWN 1.5 per cent at US$58.02 per barrel
West Texas Intermediate: DOWN 1.5 per cent at US$52.52 per barrel — AFP
