Japan, Singapore In Brink Of Recession As Coronavirus Spreads
Japan and Singapore are on the brink of recession and South Korea on Friday said its exports to China slumped in the first 20 days of February as the outbreak upends global supply chains.
Factories in China, Southeast Asia’s largest trading partner, have struggled to return to work as authorities ramp up containment efforts, with officials saying that January and February exports and imports will be hit by the outbreak that has claimed more than 2,200 lives.
“Data suggests that a pickup in activity is still elusive, which could have negative implications on global growth,” DBS Group Research said in a note.
Major Asia Pacific stock indexes were mostly lower on Friday as lingering concerns over the economic impact of the ongoing coronavirus epidemic continued to drive global investors out of Asian stocks. While the impact of the virus on China’s economy continues to be the main concern, investors are now reacting to the rapid spread of the coronavirus outside mainland China and its impact on Asia’s economies.
On Friday, Japan’s Nikkei 225 Index settled at 23386.74, down 92.41 or -0.39%. Hong Kong’s Hang Seng Index finished at 27308.81, down 300.35 or -1.09% and South Korea’s KOSPI Index closed at 2162.84, down 32.66 or -1.49%.
China Shanghai Index settled at 3039.67 up 9.52 or +0.31% and Australia’s S&P/ASX 200 Index finished at 7139.00, down 23.50 or -0.33%.