Monday 6 April 2020 ,
Monday 6 April 2020 ,
Latest News
  • PM’s stimulus package to save economy, livelihood, says FBCCI
  • Mayor Ivy seeks curfew or lockdown in NCC
  • Don’t leave or enter Dhaka until further notice: Police HQ
  • One more dies; 18 new patients detected
  • Coronavirus cases rise to 88; death toll now 9
  • Coronavirus: 2 buildings, one tin-shed house under lockdown in Mirpur
  • Coronavirus: Govt extends general holiday till April 14
  • Coronavirus: Biman cancels all flights until Apr 14
  • Corona fallout: PM unveils new stimulus packages of Tk 67,750 cr
  • Coronavirus Hotline Numbers: Hunting Number: 01944333222, DGHS: 16263, 333
19 February, 2020 00:00 00 AM
Print

Asian markets fall as virus hits earnings, growth

AFP, Hong Kong
Asian markets fall as virus hits earnings, growth
A man walks past an electronic stock board showing Japan’s Nikkei 225 index at a securities firm in Tokyo yesterday. Shares have fallen in Asia as the impact from the virus outbreak that began in China deepened, with Apple saying it would fail to meet its profit target and China moving to cancel major events including the Beijing auto show. AP PHOTO

Asian markets tumbled yesterday after Apple warned the new coronavirus had hit output and demand in China, fuelling fears over the wider impact of the epidemic on corporate earnings and economic growth.

Investors looked past a positive lead from European bourses to focus on the spiralling fallout from the virus that has so far killed more than 1,800 people and infected nearly 72,500, mostly in mainland China.

As well as denting company bottom lines, the virus has sparked panic buying, economic jitters and the cancellation of high-profile sporting and cultural events.

“Best to buckle in as we could be in for a bumpy ride (over) the next few weeks,” said Stephen Innes of AxiCorp.

“I’m struggling to find any research report that doesn’t suggest (COVID-19) could significantly affect short term earnings.”

Apple suppliers in Asia were hit by the tech giant’s warning that it would miss its quarterly revenue forecast because of the virus, dragging markets lower.

Tokyo’s benchmark Nikkei 225 index closed down 1.4 per cent — its fourth straight session in the red — a day after data showed the economy shrank in the December quarter, even before the effects of the virus hit Japan.

Hong Kong was 1.5 per cent lower as banking heavyweight HSBC reported a 33 per cent fall in 2019 pre-tax profits alongside an announcement that it was cutting 35,000 jobs. Its shares were off 2.8 per cent.

Mainland China’s benchmark Shanghai Composite Index recovered earlier losses to close up 0.1 per cent.

Elsewhere, Singapore fell 0.6 per cent as investors digested the government’s decision to cut its economic growth forecast for this year as the virus batters the city state’s tourism and trade.

Seoul was off 1.5 per cent and Taipei lost one percent. Sydney shed 0.2 per cent.

Investors have taken some comfort from a slowdown in new infections outside hardest-hit Hubei province, which Chinese officials say is a sign that the outbreak is under control.

But World Health Organization chief Tedros Adhanom Ghebreyesus said the trend “must be interpreted very cautiously”.

IMF chief Kristalina Georgieva said Sunday there could be a cut of around 0.1-0.2 percentage points to global growth but stressed there was much uncertainty about the virus’s economic impact.

Further moves by China’s central bank on Monday

to cushion the world’s second-largest economy against the health crisis appear to have done little to allay concerns.

European markets opened lower yesterday, with London’s FTSE 100 and the Paris CAC both falling 0.5 per cent. Germany’s DAX was down 0.6 per cent.

Eurogroup chief Mario Centeno predicted Monday the coronavirus would have a “temporary” impact on the eurozone and the WHO warned against over-reacting about the epidemic.

US markets were closed Monday for a holiday.

China is the world’s biggest importer and consumer of oil, and crude prices have been particularly sensitive to the epidemic that has spread to nearly 30 countries and territories.

Global oil demand will suffer its first quarterly drop in a decade as the virus lashes China’s economy and its impact ripples throughout the world, the International Energy Agency warned last week.

Brent Crude fell 1.5 per cent and West Texas Intermediate was down 1.3 per cent.

Gold, seen as a safe haven in times of uncertainty, was up 0.5 per cent.

Comments

Most Viewed
Digital Edition
Archive
SunMonTueWedThuFri Sat
01020304
05060708091011
12131415161718
19202122232425
2627282930

Copyright © All right reserved.

Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Disclaimer & Privacy Policy
....................................................
About Us
....................................................
Contact Us
....................................................
Advertisement
....................................................
Subscription

Powered by : Frog Hosting