Markets in Asia are opening with slight changes compared to Friday’s clause, with investors continuing to assess the potential economic hardship of the coronavision, which has infected more than 68,000 people and killed more than 1,600.
Nikkei futures point to a cautious start in Japan. In Australia, the ASX 200 is down 0.1% during early trading, with the financial sector losing half a percent.
“The economic and human damage to COVID-19 creates a lot of uncertainty, especially as news becomes increasingly difficult to understand,” said John Bromhead of ANZ Research.
“The markets seem to expect a short-term economic impact, but they are all in the ‘we are going to see’ phase,” he said, explaining that despite the closure of Chinese factories, they are beginning to open little by little and some recovery is expected.
The virus, which was first discovered in Wuhan, China, is expected to have a significant economic impact on China as well as the global economy.
People stayed home and benefited from reimbursement policies that authorities have accepted – the Chinese aviation authority said that after it first announced a reimbursement policy in late January, domestic and foreign airlines have processed 20 million tickets worth more than 20 billion yuan ($ 2.9 billion). The number of flights is about a quarter of what it was last year, a spokesman said.
China’s railroad authority said that rail travel so far during the holiday period was one-seventh of the estimated 280 million and that it had processed 11.5 billion yuan ($ 1.6 billion) in ticket reimbursement.
Trader Aleksandar Kumanov