Stock Markets Drop as Global Coronavirus Spread Continues

After countries like South Korea, Italy and Iran have seen coronavirus cases balloon, stock markets around the world have felt the impact. The Dow closed on Tuesday 12 percent lower than on February 3 (13.6 percent lower than on January 2).

Even harder hit was the Australian benchmark index S&P/ASX 200, which slid to levels 17.3 percent lower than those on Feb 3. At currently 107 cases, the coronavirus is only beginning to take hold in the country, causing a first shock to financial markets there. The Australian government this week presented a AUS$350 million emergency stimulus plan to counteract the negative impact of the virus on the economy, including the fast-tracking of infrastructure projects and more business grants given out.

In Japan, where case numbers have been high for several weeks, the Nikkei index kept suffering and dropped to 15.5 percent below early February levels. South Korea, a country that has been lauded for its response to the virus, fared a little better. The Kospi index did not deteriorate as quickly, but still closed almost 10 percent lower on Wednesday than on February 3.