Asian market takes hit as Covid 19 takes further grip over countries

Economists and Business analysts are still measuring the depth and intensity of the impact of covid 19 on the global economy. Photo: Shaheen Abdulla/Maktoob

Despite enormous stimulus packages announced by the countries seriously hit by Covid 19, Asian markets responded badly and hit the rock bottom. Investors mood was low and reflected in the market which resulted in a blood bath across the Asian stock markets. There are reports that the negative mood gained traction due to the failure of US lawmakers to agree on a trillion-dollar emergency package to help the reeling American economy.

Around the world, more than 784,000 people have been confirmed to have the virus, and nearly 165,000 have recovered.

The death toll from the virus has reached over 37,500, with nearly an over billion people confined and major business sector shut in many countries which have created the fear of recession in coming days. 

Most of the media have quoted AFP which has reported that Wellington nosedived 9.3 per cent as New Zealand announced a four-week lockdown to stop the spread of the coronavirus. The Hang Seng Index in Hong Kong was down 3.7 per cent, Sydney dropped six per cent, Shanghai shed 2.5 per cent and Taiwan was off by 2.8 per cent. Singapore Tanked 7.5 per cent, Jakarta lost four per cent, and Seoul was down 3.4 per cent. Tokyo, however, was up 0.5 per cent as a cheaper yen against the dollar boosted the market.

Economists and Business analysts are still measuring the depth and intensity of the impact of covid 19 on the global economy. As countries are going with massive lockdown to curb the virus spread, it is expected that the economy will take a massive hit, which was recovering from a series of challenges.

Meanwhile, the Indian market is expecting another round blood bath in teh stock market as the centre has asked to lockdown 75 major districts of India. Mumbai, which is the epicentre of the stock market and business is reeling under growing covid 19 virus patients. Experts of the Health sector are not ruling out the possibility of community spread in the state which as the reported highest number of covid 19 cases, it has reported 96 cases as of now. 

The state and the local government bodies are asking people to stay home to curb possible community spread, it would be difficult to asses teh intensity of impact on business at this point where we are still in the third stage of virus spread. 

Mohammed Shariff is a senior journalist who has earlier worked with Indian Express, Times of India, and currently works at Madhyamam.

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