HSI Drops Sharply As Asian Markets Mauled Again

Hong Kong stocks ended Monday's morning session lower, with investors worried about the economic impact of the coronavirus pandemic, which has killed more than 14,000 people around the world.

The Hang Seng Index, which had plunged 5 percent at the open, went into the break down 3.8 percent, at 21,949.

On the mainland, the Shanghai Composite Index lost 1.6 percent by midday break, to 2,701 while the Shenzhen Composite Index, dropped 1.9 percent, to to 1,664.

Most other Asian markets were in the red as a negative mood was fuelled by the failure of US lawmakers to agree on a trillion-dollar emergency package to help the reeling American economy.

Wellington nosedived 9.3 percent as New Zealand announced a four-week lockdown to stop the spread of the coronavirus.

Sydney dropped 6 percent, and Taiwan was off by 2.8 percent. Singapore tanked 7.5 percent, Jakarta lost 4 percent, and Seoul was down 3.4 percent.

Tokyo, however, was up 0.5 percent as a cheaper yen against the US dollar boosted the market.

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 US GDP drops, according to Bloomberg News.

"These rapid and unprecedented downgrades illustrate just how fast we've moved from a brief health scare to a full-blown global recession," said Stephen Innes, global chief markets strategist at AxiCorp.

On oil markets, Brent Crude was down t3 percent, but West Texas Intermedia was up 0.8 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)

______________________________