· Wall St. eases, led by tech decline on mounting fears coronavirus could spread
U.S. stocks fell on Thursday, led by declines in technology heavyweights, after reports of new coronavirus cases in China and other countries intensified fears over its spread and impact on the global economy.
The Dow Jones Industrial Average fell 128.05 points, or 0.44%, to 29,219.98, the S&P 500 lost 12.92 points, or 0.38%, to 3,373.23 and the Nasdaq Composite dropped 66.22 points, or 0.67%, to 9,750.97.
Recent policy easing by China, a largely better-than-expected fourth-quarter earnings season and hopes that the economic jolt from the coronavirus will be short-lived have pushed Wall Street’s main indexes to new highs in recent weeks.
Investors were unnerved by a sharp late-morning drop that took the S&P 500 briefly down more than 1% on the day, with some traders attributing the move to a Global Times report that a central Beijing hospital had reported 36 new cases. This raised worries about a potential increase in infections in the Chinese capital.
Investors were already skittish after Japan reported two new deaths and South Korea reported a rise in new infections. Research suggested the virus was spreading more quickly than previously thought.
· South Korean stocks lead losses in Asia as virus fears persist
Stocks in Asia were mixed in Friday morning trade following a decline in stocks overnight stateside amid fears over the economic impact of the ongoing coronavirus outbreak.
Stocks in South Korea led losses in the region as the Kospi fell 1.02% as shares of SK Hynix dropped more than 1%. The chip maker said Thursday that 800 of its workers had quarantined themselves after a trainee was found to have had contact with a virus patient, according to Reuters.
On Thursday, the country reported its first coronavirus death. The number of new confirmed cases in South Korea also jumped sharply by 22 to a total of 104 cases.
Over in Japan, however, the Nikkei 225 rose 0.17% as shares of index heavyweight and conglomerate SoftBank Group gained 1.25%. The Topix index also advanced 0.39%.
Meanwhile, shares in Australia were lower, with the S&P/ASX 200 down 0.13% as shares of Wesfarmers dropped about 2%.
Overall, the MSCI Asia ex-Japan index traded 0.29% lower.
Investors continue to watch for developments on the ongoing coronavirus — also known as COVID-19 — outbreak, with the World Health Organization’s Director-General Tedros Adhanom Ghebreyesus telling reporters on Thursday that the low number of cases outside of China “may not stay the same for long.”
Reference: CNBC, Reuters
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