According to David Roche of
Independent Strategy, the hardness of the fast-growing coronavirus outbreak in
China that more than a dozen people lost their lives and the size of the spread
will only be more accurate after the Lunar New Year celebrations. Millions of
Chinese will be traveling through the holiday season while China celebrates the
Spring Festival. An economist at Macquarie Capital warned Larry Hu said: “The
bad news is that the worst has yet to come, as the number of new infections is
still on the rise."
We are still missing
information regarding the strange new virus that has killed 17 people up to
this point and contaminated almost 600 others worldwide. The virus first
identified in the Chinese city of Wuhan and has expanded to Beijing, Shanghai
and other major cities in the country. Cases found in Japan, South Korea,
Thailand, and one case in the United States, have also been identified.
The economic effects of this
virus on the Asian markets are many. Today Japan announced its trade data that
shows that exports are dropping quickly and more profoundly than foreseen last
month. According to data published by the Ministry of Finance, the Japanese
exports for December decreased by more than 6% as opposed to 2019. That was
much weaker than expectations of a 4.2% reduction prognosticated by economists
in a Reuters survey.
The Japan Nikkei 225 fell
lower almost 1% to end at 23,795.43. In
the meantime, Australian shares fell on the day, with the S&P/ASX 200
sinking 0.63% to 7,087. The popular safe-haven Japanese Yen increased by about
0.2% to a 14-day peak of 109.55 per dollar while investors ran for safety.
On Thursday the World Health
Organization will meet once more following a decision not to designate the
outbreak of the virus as a global health distress.