· Coronavirus fears, U.S. business data drag down Wall Street
U.S. stocks sold off and the Nasdaq had its worst daily percentage decline in about three weeks on Friday as a spike in new coronavirus cases and data showing a stall in U.S. business activity in February fueled investors’ fears about economic growth.
The IHS Markit Purchasing Managers’ index of services sector activity dropped to its lowest level since October 2013, signaling a contraction for the first time since 2016. The manufacturing sector also clocked its lowest reading since August.
The Dow Jones Industrial Average .DJI fell 227.57 points, or 0.78%, to 28,992.41, the S&P 500 .SPX lost 35.48 points, or 1.05%, to 3,337.75 and the Nasdaq Composite .IXIC dropped 174.38 points, or 1.79%, to9,576.59.
Hopes of monetary easing by major central banks had propelled the S&P 500 and the Nasdaq to all-time highs earlier this week.
· European stocks close lower as coronavirus spread curbs sentiment; Pearson down 4.5%
European stocks closed lower on Friday afternoon, as investors monitored a raft of economic data and the latest developments in the coronavirus outbreak.
The pan-European Stoxx 600 fluctuated for much of the day but closed 0.6% lower, taking cues from poor sentiment over on Wall Street.
In the U.S., stocks fell sharply on the new coronavirus cases, which fueled worries over a pronounced global economic slowdown.
· South Korea stocks down more than 2% as country raises coronavirus alert to ‘highest level’
Stocks in South Korea plunged in Monday morning trade after the country raised its coronavirus alert to the “highest level” following a recent spike in cases throughout the country.
The Kospi was down more than 2% in early trade while the Kosdaq fell 2.25%.
The disease has taken at least five lives in South Korea so far, according to the country’s Centers for Disease and Control and Prevention on Sunday. A recent jump in the number of cases in South Korea has brought the total infected to more than 600, the country with the most cases outside the mainland.
Industry heavyweight Samsung Electronics announced Saturday that a coronavirus case had been confirmed at a mobile device factory complex in South Korea, resulting in the shutdown of the entire facility until Monday morning, according to Reuters. The affected factory reportedly accounts for a small portion of Samsung’s total smartphone production. Samsung Electronics shares were down more than 2.5% in early trade.
Meanwhile, shares in Australia fell in morning trade, with the S&P/ASX 200 down more than 1.8% as almost all the sectors declined. The energy subindex fell about 3% as shares of oil companies fell. Santos plunged2.65% while Woodside Petroleum plummeted about 5%.
Overall, the MSCI Asia ex-Japan traded about 0.7% lower.
Markets in Japan are closed on Monday for a holiday.
Reference: Reuters, CNBC
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