Asian markets recorded some wild move today, as global spread of coronavirus accelerated further over the weekend. stocks are in deep red, with, Nikkei down -5.5% currently. Hong Kong HSI is down -3.5%. China Shanghai SSE is down -2.4%. Singapore Strait Times is down -4.2%. Oil price plunges over -25% as additionally pressured by price-war fear. Gold’s reaction is relative limited, struggling to stay above 1700 handle. In the currency markets, Aussie leads Canadian and New Zealand lower. Yen, Euro and Swiss are the safe haven currencies that surge.
Coronavirus in situation China, the origin of the global outbreak, continues to stabilize, with just 40 new cases and 22 deaths reported for Sunday. Total accumulated cases now stands at 80735, with 3119 deaths. New cases in South Korea also slowed some what, as total stands at 7382 with 53 deaths. Italy (7375 cases, 366 deaths) and Iran (6566 cases, 194 deaths) are quickly catching up and will likely surpass South Korea very soon.
Situation in Europe is very worrying with 1209 cases in France, 1040 in Germany, 674 in Spain, 332 in Swiss, 278 in UK, 265 in the Netherlands, 203 in Sweden, 200 in Belgium, 176 in Norway, 104 in Austria. US, with 542 case, will be the next point of focus regarding the coronavirus spread.
Hong Kong HSI gapped through 25995.15 structural support and hit as low as 25025.05 so far. Current down side momentum suggests that 24520.63 (2018 low) will likely be taken out soon to resume whole down trend from 33484.07 (2018 high). Next down side target will be 61.8% projection of 33484.07 to 24540.63 from 29174.92 at 23647.87. But we’d expect further fall, in the medium term, to 100% projection at 20231.48 at least.
