Around the world, the Coronavirus outbreak created various problems. The world’s largest second and third economies are in Asia, for instance. In this situation, it is no alert that the ongoing coronavirus outbreak had a significant impact on the stock markets.
Asia Pacific markets traded mixed on Monday, as investors are closely monitoring the situation to access the economic impact of the virus. The number of infected surpassed 70,000, unfortunately.
Mainland Chinese stocks strengthened their positions, despite the problems. The Shanghai Composite increased 2.28% to 2.983.62. Meanwhile, the Shenzhen composite raised with 3.18% to 1,835.96. Nevertheless, the Shenzhen component rose from 2.98% to 11,241.50.
During the final hours of trading, Hong Kong’s Hang Seng index gained 0.58%.
Stock indexes failed to deal with problems in Japan. The benchmark Nikkei 225 decreased by 0.69% to 23,523.24. Moreover, the Topix index fell 0.89% to 1,687.77. The Japanese economy, in the late 2019, shrank at an annualized pace of 6.3%, based on the government’s data.
The ASX 200 index, in Australia, closed fractionally lower at 7,125.10.
South Korea’s Kospi Index declined 0.06% to 2,242.17.
Authorities of China try to minimize the damage to the economy. China plans to target tax cuts. Moreover, the government will most probably increase spending to stabilize the situation.
Moreover, the Finance Ministry plans to provide 8 billion yuan. As part of support’s second round, the government will allocate the funds. This way, officials of China are willing to boost the economy.
The central government provided information, as of Friday, the ministry allocated 90.15 billion in support.
Also, economists are forecasting that the People’s Bank of China will ease funding conditions in Chinese money markets. That move will allow countering risks created by the ongoing outbreak of coronavirus.
The virus happened simultaneosly with the Lunar New Year. Millions of people had to modify their arrangements “thanks” to the outbreak as a result. It will take time to count the economic impact on the local as well as the global economy.
Moreover, the economy of China was struggling before the virus outbreak. Nevertheless, the current situation created even more significant problems for the country. It is no surprise that stock markets across the region have to deal with side effects in this situation. The coronavirus reached all areas of China. Nevertheless, Chinese officials are working very hard to contain the virus. However, it will not be easy to mitigate the results caused by a coronavirus.