March 13 2020
Asian equities went into a downward spiral today as global markets experience their worst performance in decades due to fears of a worldwide recession caused by the Covid-19 pandemic.
Tokyo went down as much as 10 percent, while Sydney and Seoul fell eight percent. Hong Kong, Singapore, Wellington and Taipei followed suit by more than six percent.
Shanghai, taking comfort from the seemingly improving Covid-19 situation in China, fell by a little more than three percent.
The losses in Asia followed a virtual implosion on Wall Street and in Europe where the Dow and London lost about 10 percent in their worst session since 1987. Frankfurt was also at its worst since 1989, the year the Berlin Wall fell, while Paris suffered its worst one-day loss ever.
The Covid-19 crisis has hit stocks across the board, but the travel industry suffered the worst as new restrictions prompt mass cancellations as sporting events were being cancelled and attractions ranging from museums to theme parks were shut down.
The economic fallout from the crisis so far has raised fears of a global recession, and there was uncertainty about how much worse it could get.
The markets, already shaken by an oil price war between Saudi Arabia and Russia, are also in fears that travel restrictions due to Covid-19 will further bring down energy demand.