
Global wipeout: Asian stocks deepen fall over virus panic
Al JazeeraJapan’s Nikkei tumbles 10 percent with other Asian stock markets not far behind as investors worry over economic hit. ‘Fight or flight’ “It’s one of those situations where there is so much uncertainty that no one quite knows how to respond … if it’s fight or flight, many people are choosing flight at the moment.” The plunge, as the coronavirus pandemic spreads, gathered pace after US President Donald Trump spooked investors with a move to restrict travel from Europe and after the European Central Bank disappointed markets by holding back on rate cuts. Gold, usually a safe harbour in times of panic, fell 3.5 percent, yields on long-dated US Treasury bonds shot up, and in currency markets, investors scrambled for dollars. The VIX volatility index – Wall Street’s “fear gauge” – and an equivalent measure of volatility for the Euro Stoxx 50 hit their highest since the financial crisis.
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