 Outbreak of China's Wuhan coronavirus continued to be a big market mover last week. According to China's own numbers, new cases in the country seemed to have slowed even though new daily deaths maintained at around 100 level. What's worrying is that contagion to other countries, in particular Asia, is getting alarmingly serious. In particular, number of infections in South Korea skyrocketed to 433 as of Saturday. Excluding Diamond Princess liner, cases in Japan also reached 100 while Singapore at 86 is not far behind. Five deaths are record in Iran, making it the largest outside of China. The coronavirus has now spread to over 30 countries including Taiwan. Global financial markets turned into risk-off mode, in particular towards the end of the week, with heavy safe haven flows into Gold and US treasuries. Yen ended as the weakest one as the coronavirus contagion creates economic and political uncertainties Japan. Even the 2022 Summer Olympic could now be in jeopardy. Australian dollar followed as next weakest as rebound in unemployment rate added to the case of April RBA easing. Swiss Franc was the strongest one on risk aversion, followed by Canadian Dollar. Dollar was originally one of the strongest, but ended mixed, partly due to profit taking, falling yields, and speculations of Fed cut. |
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