HSI Continues Nosedive As Virus Fears Pummel Markets

Hong Kong stocks plunged on Monday with investors spooked about the economic impact of the coronavirus pandemic despite the announcement of massive emergency stimulus measures worldwide.

The Hang Seng Index plummeted 4.9 percent, to close at 21,696.

On the mainland, the Shanghai Composite Index dropped 3.1 percent, to 2,660 while the Shenzhen Composite Index lost 4.3 percent, to close at 1,631.

Most Asian markets were hammered on Monday as US lawmakers failed to agree on a trillion-dollar emergency package to help the reeling American economy.

Wellington nosedived 7.6 percent as New Zealand announced a four-week lockdown to stop the spread of the coronavirus.

Sydney dropped 5.6 percent and Taiwan was off by 3.7 percent.

Singapore tanked 7.5 percent, Jakarta lost 3.8 percent, and Seoul was down 5.5 percent.

Tokyo was the exception, closing two percent higher as a cheaper yen against the US dollar boosted Japanese markets.

Economists and analysts are now worried about how deep the impact of the pandemic could be on the global economy, with social distancing measures and lockdowns dealing serious blows to many industries.

Goldman Sachs, Morgan Stanley and JP Morgan Chase have all forecast a drop in US GDP, according to Bloomberg News.

Constance Hunter, chief economist at KPMG, agreed, telling Bloomberg TV: "It's a health crisis that's started morphing into a financial crisis."

On oil markets, Brent Crude was down 2.6 percent, but West Texas Intermediate was up 1.4 percent.

The commodity has faced increased volatility in recent weeks not only because of the coronavirus pandemic, but also because of a price war between top producers Saudi Arabia and Russia. (AFP)