Markets keep falling over coronavirus fears: asian shares plunge as much as 10%

World Sergey Matyunin 13-Mar-2020
ID 159130152 © Maximusnd | Dreamstime.com
ID 159130152 © Maximusnd | Dreamstime.com

Asian shares plunged as much as 10 per cent today as the coronavirus crisis is getting its grip over financial markets. Benchmarks in Japan, Thailand and India all dropped today in the biggest plunge since the Black Monday crash of 1987.

Tokyo’s Nikkei 225 fell nearly 10 per cent in the morning and ended more than six per cent down despite a partial recovery. Trump’s comments suggesting delaying the Tokyo Olympics because of the coronavirus have also weighed on Japan’s markets, analysts said.

Gold and oil fell and once-safe sovereign bonds slumped as investors liquidated everything they could to cover losses.

Asian currencies also suffered as virus fears drove demand for the US dollar, the world’s reserve currency.

European markets fell 12% in one of their worst days ever, even after the European Central Bank pledged to buy more bonds and offer more help for the economy.

The market plunge has gathered pace after Trump’s announcement that European visitors were banned from the US (pictured) has spooked investors this week

The S&P 500 plummeted 9.5 per cent, for a total drop of 26.7 per cent from its all-time high, set just last month.

The Dow Jones Industrial Average sank 2,352 points, or 10 per cent, its heaviest loss since its nearly 23 per cent drop on October 19, 1987, known as Black Monday.