JSE at one-month low as China virus harries markets

The JSE continued its losing streak for a second day on Tuesday morning, as fears over the coronavirus weighed on sentiment, leaving investors wary.

Chinese health authorities said on Tuesday that the virus outbreak has killed 106 people so far and infected 4,515. Multiple cases of the virus have so far been confirmed in Hong Kong, Macao, Taipei, Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France and the US.

Japanese economy minister Yasutoshi Nishimura warned on Tuesday that corporate profits and factory production might take a hit from the coronavirus outbreak in China that has rattled global markets and chilled confidence.

Asian stocks extended a global sell-off as the outbreak in China fueled concern over the damage to the world’s second largest economy — an engine of global growth, reported Reuters.

Global efforts aimed at stopping the spread of the virus are increasing, with the US advising against non-essential travel to China, while some companies in China and South Korea have been evacuating personnel and halting operations.

Hong Kong’s Hang Seng and the Shanghai Composite remained closed on Tuesday for the extended Lunar New Year holiday.

In Europe, the FTSE 100 and Germany’s DAX 30 were little changed, while France’s CAC 40 gained 0.16%.

Source: businesslive.co.za