Markets tumble in Asia-Pacific as continuing US rout deepens pessimism about global recession
- South Korea’s Kospi led Asia-Pacific slide as investors doubted US and EU relief packages will be enough to hold back a possible global recession
- Hong Kong and China see more losses
Stocks in Asia continued to drop Thursday, as pessimism about global growth put investors on edge following another bloodbath in US equities.
While the European Union and the US are rolling out measures to blunt the economic upheaval brought about by the coronavirus pandemic, jittery traders are doubtful the relief packages will be enough to hold in check a possible global recession.
The EU launched a US$820 billion bond-buying programme, and US President Donald Trump signed a relief package that included paid sick leave, food assistance and free virus testing. A US$1 trillion package – including help for hard-hit airlines and businesses – is also in the works in the US Congress.
China’s Shanghai Composite Index fell 1 per cent at the close for a seventh consecutive day of declines. The gauge was around 3 per cent short of a bear-market level, remaining the only major market in the world that has not plunged into bear territory.
The Hang Seng fell into a bear market last Friday for the first time since 2015, when the mainland’s equities suffered a meltdown.