Asian Shares Tumble Led by Weaker Travel, Tourism StocksShares of companies highly exposed to China’s economy tumbled across Asia on Tuesday on rising concerns about the impact of global travel bans associated with the virus outbreak.
Asia Pacific stocks were down sharply on Tuesday amid fears over the deadly coronavirus outbreak in the region. As the virus continues to spread, what has become clear to investors is that the Chinese economy will take a hit for a time with travel and tourism expected to be impacted the most initially.
On Tuesday, Japan’s Nikkei 225 Index settled at 23215.71, down 127.80 or -0.55%. South Korea’s KOSPI Index finished at 2176.72, down 69.41 or -3.09% and Australia’s S&P/ASX 200 closed at 6994.50, down 96.00 or 1.35%.
China and Hong Kong stock markets remain closed for the Lunar New Year holiday, but when they reopen, they are expected to plunge.
Here is the official update from the National Health and Health Commission government website.
At 04:00 on January 27, 30 provinces (autonomous regions and municipalities) reported 1771 newly confirmed cases, 515 severe cases, and 26 new deaths (24 in Hubei Province, 1 in Beijing, Hainan). 1 case in the province), 9 new cases were cured and discharged, and 2077 new cases were suspected.
As of 24:00 on January 27, the National Health and Health Commission had received a total of 4,515 confirmed cases, 30 of which were 976 cases of severe cases, 106 cases of deaths, and 60 cases of discharged patients. There are 6973 suspected cases.
At present, 47,833 close contacts have been tracked. Of the 914 people who were released from medical observation on the same day, 44,132 people are currently receiving medical observation.
Accumulated notifications were received from Hong Kong, Macao and Taiwan: 8 cases from Hong Kong Special Administrative Region, 7 cases from Macao Special Administrative Region, and 5 cases from Taiwan.
Coronavirus Hitting Asia Stocks With Exposure to China
Shares of companies highly exposed to China’s economy tumbled across Asia on Tuesday on rising concerns about the impact of global travel bans associated with the virus outbreak, and even as some stocks involved in preventative health spiked.
In Australia, the benchmark S&P/ASX 200 Index fell 1.35%, weighed by stocks exposed to China. Shares of airlines and travel agents were sharply lower amid freezes on travel into and out of the world’s second largest economy, while companies with an indirect exposure to Chinese consumer spending abroad, such as casinos and luxury retailers, also tumbled.
In South Korea, cosmetic makers highly dependent on Chinese tourists coming to Seoul stumbled, with Tonymoly and Able C&C losing more than 12% and 15% respectively on Tuesday.
Medical Supply Related Stocks Rise
The Malaysian Rubber Glove Manufacturers Association said on Tuesday China had requested more urgent shipments from the world’s top producer, and its members were ramping up production.
In South Korea, shares of companies producing masks surged. In Japan, medical supply companies jumped on increased orders of masks and protective closing.