Asian markets fall as virus hits earnings, growth | The Daily Star
12:00 AM, February 19, 2020 / LAST MODIFIED: 12:00 AM, February 19, 2020

Asian markets fall as virus hits earnings, growth

Asian markets tumbled Tuesday 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 percent -- 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 percent lower as banking heavyweight HSBC reported a 33 percent fall in 2019 pre-tax profits alongside an announcement that it was cutting 35,000 jobs. Its shares were off 2.8 percent.

Stay updated on the go with The Daily Star Android & iOS News App. Click here to download it for your device.

Type START <space> BR and send SMS it to 22222

Type START <space> BR and send SMS it to 2222

Type START <space> BR and send SMS it to 2225

Leave your comments

Top News

Top News