Stocks in major Asia Pacific markets tumbled on Wednesday as investors continued to watch for developments around government stimulus with the coronavirus continuing to spread.
The Nikkei 225 reverted to the negative, dumping 451.06 points, or 2.3%, Wednesday to 19,416.06.
The Japanese yen, often seen as a safe-haven currency, traded at 104.41 per U.S. dollar after touching an earlier low of 105.67.
In Hong Kong, the Hang Seng Index dropped 160.9 points, or 0.6%, to 25,231.61.
Shares of Cathay Pacific jumped more than 2% despite the company posting in its 2019 annual results a 27.9% year-on-year plunge in its profit attributable to shareholders. Commenting on the prospects for the airline, Cathay Pacific Chairman Patrick Healy said the earnings release that it expected to “incur a substantial loss for the first half of 2020” as travel demand has “dropped substantially.”
Stocks in Australia also saw sharp declines as the S&P/ASX 200 dropped into bear market territory, meaning it was more than 20% lower than its 52-week high.
National Australia Bank’s (NAB) Tapas Strickland warned in a Wednesday morning note that markets are “likely to remain volatile” as headlines around the coronavirus “continue to be on the negative side.”
Strickland, who is a director of economics and markets at the Australian lender, cited reports of the number of coronavirus cases in Italy spiking past 10,000 as well as Centers for Disease Control and Prevention Director Robert Redfield’s comments that certain areas of the U.S. are currently in “high mitigation” rather than containment.
Concerns surrounding the global coronavirus outbreak have sent markets on a roller-coaster ride in recent days. The disease has infected at least 113,851 and taken more than 4,000 lives so far, according to the latest figures from the World Health Organization.
As investors watch for stimulus measures by governments to combat the coronavirus’ impact, Australia’s government announced on Wednesday a 2.4 billion-Australian-dollar (approx. $1.56 billion U.S.) health package that it said would provide “unprecedented support across primary care, aged care, hospitals, research and the national medical stockpile.”
Shares of Qantas Airways plunged 9.2% on Wednesday after the firm announced on Tuesday “further cuts” to its international flights, with capacity being reduced by “almost a quarter for the next six months.” The airline said the cuts came following “a sudden and significant drop in forward travel demand” as the coronavirus spreads into Europe and North America.
The Australian dollar was at $0.6496 after its slip yesterday from levels above $0.657.
In other markets
The CSI 300 slipped 54.3 points, or 1.3%, to 4,028.43.
In Korea, the Kospi index fell 54.66 points, or 2.8%, to 1,908.27
In Taiwan, the Taiex subtracted 109.79 points, or 1%, to 10,983.75
In Singapore, the Straits Times Index lost 48.82 points, or 1.7%, to 2,783.72
In New Zealand, the NZX 50 subsided 23.87 points, or 0.2%, to 10,873.60
In Australia, the ASX 200 relapsed 213.73 points, or 3.6%, to 5,725.87