(Bloomberg) -- Stocks and crude oil tumbled, and havens including the yen and Treasuries jumped, as fears deepened about the rising impact of the deadly coronavirus.
With no sign of the disease's containment, traders rushed out of risk assets. Contracts on the S&P 500 Index fell more than 1% and Japan's Topix opened down in excess of 1.6%, while oil dropped some 3% in New York. Ten-year Treasury yields sank to the lowest since October. The moves come on a day with limited trading options in Asia, as markets are shut in locations including China, Hong Kong, South Korea and Australia, due to holidays.
China announced an unspecified extension to the weeklong lunar new year holiday, amplifying the economic impact. Beijing also suspended the sales of package tours, hitting firms around the world that rely on Chinese travelers' spending. The death toll from the virus has risen to at least 80, and confirmed cases in the U.S. rose to five on Sunday.
"I'm starting to think cash is the right place to be for the next few weeks," Stephen Innes, chief Asia market strategist at Axitrader, wrote in a note Monday. "Any economic shock to China's colossal industrial and consumption engines will spread rapidly to other countries through the increased trade and financial linkages associated with globalization."
The virus news is coinciding with an earnings season in full swing. Apple, Facebook and Samsung are among those due to report this week. Investors will also have a Federal Reserve policy meeting and Mark Carney's last monetary policy decision as the Bank of England's governor to monitor.
Here are some events to watch out for this week:
These are the main moves in markets:
To contact the reporter on this story: Cormac Mullen in Tokyo at email@example.com
To contact the editor responsible for this story: Christopher Anstey at firstname.lastname@example.org
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.