“Morgan Stanley” Believes Asian Econ to Remain on Track even with the 2nd Virus Outbreak

The second wave of coronavirus outbreak will not be as severe as the first one, said Morgan Stanley’s economist amid rising coronavirus cases in China and South Korea after easing their lockdown measures.

 

Investors have been weighing on the possibility of a second wave of coronavirus outbreak in recent weeks as the report from South Korea, which was among the first countries to ease lockdown measures, showed an uptick in new cases, followed by China last week. Across the globe, the U.S. also reported a significant growth in new cases as well.

 

However, Morgan Stanley’s economist and managing director Deyi Tan, through CNBC, said if the second outbreak occurred, the damage would not be as much as the first due as policymakers have the experience on how to handle the situation from the first outbreak.

Tan stated that several Asian countries such as South Korea, Taiwan and Hong Kong were among the countries that started to ease their economies in late April. Even though some report an uptick in new cases, which he also expected to happen, the trend is still manageable.

In addition, Tan did not expect the second wave (if occurred) to cause the global economy or Asian economies to go through a double dip.