SYDNEY- Asian shares slipped on Tuesday as growing concerns about a recently discovered strain of coronavirus in China swiped in risks in Asian financial markets.
Safe-haven bonds and the yen marginally advanced as investors recalled implications of SARS virus back in 2003, with the possibility of nationwide spread of coronavirus as millions will visit for the Lunar New Year.
“It’s an essential enough development that markets will monitor it on the risk radar as, if things turn critical, it could provide a massive blow to the airline industry and a knockout punch to local tourism,” said Stephen Innes, Asia Pacific market strategist at AxiCorp.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed 1% after a strong performance. Hong Kong’s Hang Seng index fell with 2% loss.
Japan’s Nikkei declined 0.8% as Shanghai blue chips sunk down with 1.5%. Anxiety also affected E-mini futures for the S&P 500 which edged down 0.4% while EUROSTOXX 50 futures recorded a 0.3% setback.
Investors were immediately armed against International Monetary Fund’s scheme of reducing its global growth outlook, brought by atrocious slowdown in India and other thriving markets.
Markets were relieved over US President Donald Trump and French President Emmanuel Macron’s settlement of digital tax.
Trump is expected to render speech at the World Economic Forum on Tuesday, with trade and tariffs as possible subjects.