Shares of Asian petrochemical companies edged lower on Monday as the rapid spreading of coronavirus continued to spark fears among investors on its impact on China’s economy. As of Monday morning, the virus which first spread in the Chinese city of Wuhan had claimed more than 900 lives, killing more people than SARS did in 2003.
Factories are expected to reopen on February 3 following the extended closure after the Lunar New Year Holiday. However, most are likely to remain shut in the near term due to logistical constraints amid the travel restrictions and city lockdowns aimed to curb the virus transmission.
Shanghai composite index was down 0.20% as of 03:40 GMT, with PetroChina down 0.38%, while Sinopec Shanghai Petrochemical gained 0.28%. Hong Kong’s Hang Seng index declined by 0.8%, with China Petroleum & Chemical Corp inching up 0.48%. Shenzhen composite index receded by 0.22%.
In Japan, the benchmark Nikkei 225 index lost 0.21%, with Mitsui Chemical and Asahi Kasei dropping 1.37% and 4.55%. Meanwhile, Singapore’s Straits Times Index slipped by 0.47%, with oleochemical producer Wilmar shedding 1.49%.
Analysts from Nomura Global Markets Research on Monday said that the novel coronavirus outbreak is expected to affect not only China but also the global economy. The impact will be felt in economic growth, supply chains, and consequently on corporate earnings.
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Published on February 11, 2020 1:04 AM (GMT+8)Last Updated on February 11, 2020 1:04 AM (GMT+8)
