skip to content

Associated Press

Asian markets plummet after Wall Street’s worst day since ’87

Nikkei falls by as much as 10%; Hang Seng down 5%

A pedestrian wearing a face mask walks past an electric board showing the Nikkei 225 index in Tokyo on Friday.

AFP/Getty Images

Asian shares plunged, then recovered slightly as Friday the 13th brought still more turmoil to markets reeling from uncertainty over the coronavirus crisis.

Benchmarks in Japan, Thailand and India sank as much as 10% following Wall Street’s biggest drop since the Black Monday crash of 1987.

Tokyo’s Nikkei 225 JP:NIK closed down 6%. India’s Sensex IN:17073彩票注册 yoyo’d between gains and losses after a 10% crash briefly halted trading. In Bangkok, the Thailand SET gained 0.5% after a temporary suspension of trading earlier in the day.

Markets worldwide have retreated as fears of economic fallout from the coronavirus crisis deepen and the meltdown in the U.S., the world’s biggest economy, batters confidence around the globe.

7073彩票注册But there were signs that government action was beginning to resonate with panicked investors as some ventured back into markets in search of bargains.

In Australia, the S&P/ASX 200 AU:XJO jumped 4.4% to 5,539.30 after state and territorial leaders agreed to up spending to counter the impact of the viral outbreak that has spread from central China across the globe, infecting 128,000 people.

“The governor of the Reserve Bank made it very clear this morning the levers of fiscal policy need to do their job here,” Prime Minister Scott Morrison said after a meeting of top officials on Friday.

“We need to put budgets to work to keep people in work,” said Morrison, whose federal government has already pledged $11.4 billion in stimulus.

Losses narrowed in mainland China, where communities are recovering from the worst of the virus. The Shanghai Composite index CN:SHCOMP fell 1.5% to 2,880.14.

Overnight, the sell-off on Wall Street helped to wipe out most of Wall Street’s big gains since President Donald Trump took office.

The S&P 500 US:SPX plummeted 9.5%, for a total drop of 26.7% from its all-time high, set just last month. That puts it way over the 20% threshold for a bear market, officially ending Wall Street’s unprecedented bull-market run of nearly 11 years. The Dow Jones Industrial Average US:DJIA7073彩票注册 sank 2,352 points, or 10%, its heaviest loss since its nearly 23% drop on Oct. 19, 1987.

European markets fell 12% in one of their worst days ever, even after the European Central Bank pledged to buy more bonds and offer more help for the economy.

7073彩票注册“Between the lack of a strong U.S. fiscal response and the latest travel ban for arrivals from Europe to the U.S., global markets appear to have been tipped over into a sell-everything mode,” Jingyi Pan of IG said in a commentary.

7073彩票注册Overriding concerns about the actual impact on business and trade is pessimism over how the crisis is being handled, with the “sum of all fears are culminating with the view that policymakers remain well behind the curve,” said Stephen Innes of AxiCorp.

7073彩票注册Not all markets have suffered equally, but many are down by double-digits from just weeks earlier. Thailand’s SET has lost nearly 40% and the Philippines’ benchmark is down more than 30%.

7073彩票注册The rout has come amid cascading cancellations and shutdowns across the globe — including Trump’s suspension of most travel to the U.S. from Europe — and rising worries that the White House and other authorities around the world can’t or won’t counter the economic damage from the outbreak any time soon.

“We’re starting to get a sense of how dire the impact on the economy is going to be. Each day the news doesn’t get better, it gets worse. It’s now hit Main Street to a more significant degree,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

7073彩票注册 fell so fast on Wall Street at the opening bell that they triggered an automatic, 15-minute trading halt for the second time this week. The so-called circuit breakers were first adopted after the 1987 crash, and until this week hadn’t been tripped since 1997.

The Dow briefly turned upward and halved its losses at one point in the afternoon after the Federal Reserve announced it would step in to ease “highly unusual disruptions” in the Treasury market and pump in at least $1.5 trillion to help calm the market and facilitate trading.

7073彩票注册But the burst of momentum quickly faded.

7073彩票注册The coronavirus has infected around 128,000 people worldwide and killed over 4,700. The death toll in the U.S. climbed to 39, with over 1,300 infections. For most people, the virus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illnesses, including pneumonia. The vast majority of people recover from the virus in a matter of weeks.

The combined health crisis and retreat on Wall Street have heightened fears of a recession.

Just last month, the Dow was boasting a nearly 50% increase since Trump took the oath of office on Jan. 20, 2017. By Thursday’s close, the Dow was clinging to a 6.9% gain, though it was still up nearly 16% since just before Trump’s election in November 2016.

7073彩票注册The Dow officially went into a bear market on Wednesday, when it finished the day down more than 20% from its all-time high. For the S&P 500, this is the fastest drop since World War II from a record high to a bear market.

“This is bad. The worst and fastest stock market correction in our career,” Chris Rupkey, chief financial economist at MUFG Union, said in a research note overnight. “The economy is doomed to recession if the country stops working and takes the next 30 days off. The stock market knows it.”

7073彩票注册After earlier thinking that the virus could remain mostly in China and that any dip in the economy would be followed by a quick rebound, investors are seeing the damage and disruptions mount.

7073彩票注册“Anyone who tells you they know how long this is going to last is wrong,” said Adam Taback, chief investment officer for Wells Fargo Private Bank. “The uncertainty here is trying to figure out how you get this virus under control, and is that a matter of days, weeks or months.”

In other trading, the oil market, which suffered huge shocks last week, is still on the decline.

U.S. benchmark crude US:CLJ20 rose 2.3% to $32.24 per barrel in electronic trading on the New York Mercantile Exchange. Brent UK:BRNK20 , the standard for international crude pricing, rose 83 cents to $34.06 per barrel.

The U.S. dollar US:USDJPY rose to 105.49 Japanese yen from 104.63 yen late Thursday.

Read Next

Read full story

Read Next

‘The CDC actually said to use scarves and bandanas if we are out of masks,’ says emergency room doctor on the front lines of coronavirus fight

7073彩票注册A MarketWatch editor speaks with a brother-in-law who works as an emergency-room doctor about what he’s witnessing and the challenges he and others working in America’s ERs are facing.

689彩票邀请码 7072彩票开户 7073彩票注册 963彩票开户 7073彩票网址 7073彩票地址 7073彩票登录 66顺彩票app 8炫彩彩票app 677彩票开户