Asia stocks opened to the downside Tuesday even as the coronavirus outbreak appeared to be slowing. Economists were predicting a hit to growth in Asia regardless of the improvement in the fight against the virus.
China’s first-quarter gross domestic product may fall 2.5% from the fourth quarter of 2019 following the pause in economic activity caused by the coronavirus outbreak, Capital Economics estimates and warns that “a prolonged shutdown could mean lost output is never recovered.”
The economic disruption is starting to spread to neighboring economies through supply chains, it says. CE notes that imports to Korea during the first ten days of this month fell by nearly 50% on year, the biggest fall since Asian financial crisis in 1997 and larger than the drop experienced at the height of the global financial crisis.
Asian currencies were also falling against the dollar amid concerns over the economic impact from the coronavirus outbreak. Investors could remain cautious about adding more currency risk before assessing the depth of the economic fallout, AxiCorp says.
The first data that may…
.(tagsToTranslate)health care(t)equity markets(t)asian countries/regions