Asian shares fell on Wednesday as a U.S. warning to Americans to prepare for the possibility of a coronavirus pandemic jolted Wall Street yet again and pushed yields on safe-haven Treasuries to record lows.
The S&P 500 and the Dow Jones Industrial Average both shed more than 3% on Tuesday in their fourth straight session of losses.
That led MSCI’s broadest index of Asia-Pacific shares outside Japan down 1.1%. Japan was among the worst-performing market in the region, weighed by growing concerns the virus could force the cancellation of the Tokyo Olympics.
Euro Stoxx 50 futures were down 0.36%, German DAX futures fell 0.53%, while FTSE futures were off 0.4%.
Yields on 10-year and 30-year U.S. Treasuries teetered near record lows and gold rose as worries about the economic impact of the virus outbreak boosted safe-haven assets.
The World Health Organization says the epidemic has peaked in China, but concern that its spread is accelerating in other countries is likely to keep investors on edge.
Chinese shares fell by 0.21%. Shares in South Korea, which has been rattled by a sudden rise in virus infections, briefly hit a two-month low.
While the stock rout has been global, the recent pace of selling in Asia has not been as severe as it has on Wall Street, which has been hit hard by the escalation of virus cases outside of Asia.
MSCI World, a market-cap-weighted stock market index of 1,644 stocks from companies throughout the world, has seen its total value fall by $3 trillion to $42.98 trillion over the past four trading sessions, Reuters calculations show.
U.S. stock futures rose 0.57% in Asia on Wednesday, but that did little to brighten the mood.
Adding to recent fears was an alert from the U.S. Centers for Disease Control and Prevention on Tuesday warning Americans to prepare for the spread of coronavirus in the United States, signaling a change in tone for the Atlanta-based U.S. health agency.
The virus has claimed almost 3,000 lives in mainland China but has spread to dozens of other countries. Of increasing concern to investors, however, in the rising death toll in other countries.
Drastic travel restrictions slammed the brakes on China’s manufacturing and consumer spending, and there are worries other countries will face similar disruptions.
The virus has also hit Japan’s stocks hard on rising worries it could lead to cancellation of the 2020 Summer Olympics scheduled to start in Tokyo in July.
Japan’s Nikkei stock index slid 0.92%, while shares of Japan’s Dentsu Group Inc, an advertising agency deeply involved in the planning and operation of the games, fell to a seven-year low on Wednesday.
Shares of sportswear makers and other companies related to the Olympics have also fallen recently.
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