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 Coronavirus panic sent world share markets crashing again,
compounding their worst week since the 2008 global financial crisis
and bringing the wipeout to $5 trillion.
Hopes that the epidemic that started in China late last year would
be over in months, and that economic activity would quickly return
to normal, have been shattered as the number of international cases
have spiraled.
"Investors are trying to price in the worst-case scenario and the
biggest risk is what happens now in the United States and other
major countries outside of Asia," said SEI Investments Head of Asian
Equities John Lau.
"These are highly uncertain times, no one really knows the answer
and the markets are really panicking."
Mainland China reported 327 new cases, the lowest since Jan. 23,
taking its tally to more than 78,800 cases with almost 2,800 deaths.
But as the outbreak eases in China it is surging elsewhere.
Four more countries reported their first cases, taking the number of
countries and territories outside China with infections to 55, with
more than 4,200 cases killing about 70 people.
Countries other than China now account for about three-quarters of
new infections.
An Italian man who arrived in Nigeria was confirmed as the first
coronavirus case in Africa's most populous country. And a person who
returned on a flight from Iran became the first in New Zealand.
In eastern Europe, Belarus and Lithuania reported their first cases.
World Health Organization (WHO) Director General Tedros Adhanom
Ghebreyesus said all nations should prepare.
"This virus has pandemic potential," Tedros said in Geneva on
Thursday. "This is not a time for fear. This is a time for taking
action to prevent infection and save lives now."
Ratings agency Moody's said a pandemic - usually taken to mean a
disease spreading quickly in different places - would trigger global
and U.S. recessions in the first half of the year.
'DECISIVE'
Mongolia, which has yet to confirm a case, placed its president,
Battulga Khaltmaa, in quarantine as a precaution after he returned
from a trip to China, state media reported.
Scientists say much remains unknown about the virus, which can lead
to pneumonia, and a vaccine could take up to 18 months to develop.
A Chinese official called the epidemic the most difficult health
crisis in the country's modern history. Another said some recovered
patients had been found to be infectious, suggesting the epidemic
may be even harder to eradicate.
In addition to stockpiling medical supplies, governments ordered
schools shut and canceled big gatherings to try to halt the flu-like
disease known as COVID-19.
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U.S. President Donald Trump's administration was considering invoking special
powers to expand production of protective gear.
In Europe, France's reported cases doubled, Germany warned of an impending
epidemic and Greece, a gateway for refugees from the Middle East, announced
tighter border controls.
Switzerland joined countries banning big events while the death toll in Italy,
Europe's worst-hit country, rose to 17 and the number testing positive increased
by more than 200 to 655.
Germany has about 45 cases, France about 38 and Spain 23, according to a Reuters
count.
Tedros told reporters that Iran, Italy and South Korea were at a "decisive
point" in efforts to prevent a wider outbreak.
OLYMPIC DOUBTS
South Korea has the most cases outside China. It reported 571 new infections on
Friday, bringing the total to 2,337. The outbreak, which has killed 13 people in
South Korea, has also dented President Moon Jae-in's popularity, a poll showed.
The head of the WHO's emergency program, Dr Mike Ryan, said Iran's outbreak may
be worse than realized. It has suffered the most deaths outside China - 26 from
245 reported cases.
U.S. intelligence agencies are monitoring the spread of coronavirus in Iran as
well as India, where only a handful of cases of have been reported, sources
said.
Japan is scheduled to host the 2020 Olympics in July but Ryan said discussions
were being held about whether to go ahead.
Organizers will decide next week on the ceremonial torch relay. It is due to
arrive on March 20 for a 121-day journey past landmarks including Mount Fuji and
Hiroshima’s Peace Memorial Park.
As of Friday, confirmed cases in Japan topped 200, with four deaths, excluding
more than 700 cases and five more deaths from a quarantined cruise liner,
Diamond Princess.
The hard-hit northern prefecture of Hokkaido declared a state of emergency and
Tokyo Disneyland closed until March 15.
Prime Minister Shinzo Abe had called for schools to close and vowed to prevent a
severe blow to an economy already teetering on the brink of recession.
Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/CHINA-HEALTH-MAP/0100B59S39E/index.html
(Reporting by Stephanie Nebehay in Geneva, Ryan Woo, Yingzhi Yang in Beijing,
Lisa Lambert and Mark Hosenball in Washington, Sangmi Chai in Seoul, Leika
Kihara in Tokyo, Kate Kelland in London, Michael Shields and Brenna Hughes
Neghaiwi in Zurich; Writing by Stephen Coates and Robert Birsel; Editing by
Simon Cameron-Moore and Giles Elgood)
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