SYDNEY (Reuters) – Asian stocks sank in water on Friday as concerns over the spread of coronavirus sent fleeing money to the sheltered shores of U.S. assets, raising the dollar to its highest level in the U.S. three years.
FILE PHOTO: Investors look at a stock information display at a broker in Shanghai, China on January 16, 2020. REUTERS / Aly Song / File Photo
Adding to the tension is the upcoming release of flash production surveys for a variety of countries. The Japanese index fell to 47.6 in February, from 48.8, marking the strongest contraction in seven years.
Even Wall Street became soggy by the end of Thursday because of news of an increase in infections in Beijing and abroad. South Korea reported 52 new confirmed cases on Friday.
The company's earnings are increasingly threatened as US manufacturers, like many others, vie for alternative sources as China's supply chain takes over.
The International Air Transport Association (IATA) estimates losses for Asian airlines alone could reach nearly $ 28 billion this year, with most of them in China.
COVID-19 fears have risen to a new level amid concerns about virus outbreaks in Beijing and outside of China, said Rodrigo Catril, a senior FX strategist at NAB.
"US. And the EU stock market has been sold on a large scale with global core yields benefiting from safe haven flows, he added. Asian currencies have plummeted, including Yen when the economic downturn worries the need for normal safe haven.
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