Asia Markets Panic as IMF Downgrades China’s GDP, S.Korea COVID-19 Cases Skyrocket!

Stocks in Asia fell in the morning session on February 24, 2020, after the IMF has downgraded global growth from 2.9% to 2.8% and also lowered China’s GDP from 6% to 5.6%. Meanwhile, confirmed coronavirus cases in South Korea reached 763 this morning.

 

As of 9:30 local time in Bangkok, Nikkei fell 0.39%, SSEC dropped 0.44%, HSI lost 1.39%, ASX 200 sank 2.21% and Kospi plunged 2.99%.

During the weekend in the G-20 meeting, the International Monetary Fund downgraded China 2020 growth forecast by 0.4 percentage point to 5.6%

During the G-20 meeting, the International Monetary Fund reported the 2020 growth forecast of China to be 5.6%, a decrease by 0.4 percentage point from its earlier estimate in January and the lowest level of growth since 1990.

“The world economy is facing a clear slowdown and this slowdown might be reinforced by the so-called coronavirus,” French Finance Minister Bruno Le Maire said in Riyadh. “The question remains open whether it will be a V-shape with a quick recovery of the world economy, or whether it would lead to an L-shape with a persistent slowdown in world growth,” said Bruno Le Maire.

Due to the coronavirus outbreak, about half of the Chinese factories’ capacity is able to operate while workers remain at home.

Moreover, concerns are growing in South Korea due to a significant increase in the number of coronavirus cases that jumped to 763 this morning. The country raised its alert to the “highest level”.

 

Last Friday, SET closed at 1,495.09 points, increased 3.85 points or 0.26% with a trading value of 56 billion baht.