Stocks plummet as markets reopen in China amid coronavirus outbreak
Stocks in China plummeted as trading resumed on Monday amid a worsening outbreak of the 2019 Novel Coronavirus (2019-nCoV). On Monday, 57 new coronavirus-related deaths were reported in China, taking the death toll to 361. As the virus continues to incite fear, Chinese shares witnessed a sharp nosedive, with the Shanghai Composite index falling nearly 9%, before recovering slightly. Here are more details.
Chinese stock markets reopened today after 10-day holiday
On Monday, markets reopened after the 10-day Lunar New Year holiday. As the markets opened Monday morning, stocks in Shanghai fell 8.7% while Shenzhen witnessed a 9% fall. The plunge came despite China's central bank pumping 1.2 trillion yuan into the financial system on Monday. The weakening of China's economy—the world's second-largest—is also an outcome of the nation's trade war with the United States.
Coronavirus originated in Wuhan in mid-December
Since mid-December, a new strain of coronavirus, called 2019-nCov or Wuhan Coronavirus, has been ravaging China and parts of the world. The virus apparently originated at a seafood market in Wuhan and has since spread to all provinces and regions of China. It has also spread to about two dozen countries, including India. The virus has infected over 17,000 people and killed 362.
Philippines reported first coronavirus-related death outside China
All but one coronavirus-related death has taken place in China, the worst-affected nation. The first coronavirus-related death outside of China was reported in the Philippines on Saturday. The deceased was a resident of Wuhan and had arrived in the Philippines on January 21.
Over 50 million placed on lockdown in China
China has placed several cities in its Hubei province—home to Wuhan—on lockdown, impacting over 50 million lives. In Wuhan, two special hospitals are being constructed to accommodate the increasing number of coronavirus patients. One of the hospitals is scheduled to open Monday, 10 days after construction work began. Meanwhile, several countries—including India, the US, Japan, etc.—have evacuated citizens from China.
What is the coronavirus?
The 2019-nCoV is similar to the Severe acute respiratory syndrome-related coronavirus (SARS) and the Middle East respiratory syndrome-related coronavirus (MERS). The 2019-nCoV is notably more contagious than SARS and MERS, however, is said to be less deadly than the two. The virus impacts a host's respiratory system and is transmitted upon close contact.
