What is the impact of the Wuhan Novel Coronavirus (2019-nCoV) on financial markets? Threat and worry, or short term opportunity?

Financial markets globally and especially in Asia are jittery with the Novel Coronavirus (2019-nCoV) spreading out of Wuhan, China across the world and the number of deaths rising. We take a look at the positive and negative impact on financial markets.

Negatively Impacted

  • Overall stock markets globally that are open (Some Asian markets such as Hong Kong and China markets remain closed for the Lunar New Year).
  • Significantly impacted sectors are technology and energy stocks on negative economic outlook.
  • Travel and hotel sectors impacted on lockdown fears and cancelled travel plans.
  • China based retailers and restaurants impacted as fears of reduced consumers and spending.
  • Other global businesses with significant business revenue presence in China.
  • Oil prices as fears of reduced demand for fuel.

Example: AirAsia Group Bhd ($airasia)

[stock_market_widget type=”chart” symbol=”5099.KL” chart=”line” range=”1mo” interval=”1d” line-color=”rgb(49, 125, 189)”]

Example: Brent Oil ETF ($bno)

[stock_market_widget type=”chart” symbol=”BNO” chart=”line” range=”1mo” interval=”1d” line-color=”rgb(49, 125, 189)”]

 

Positively Impacted

  • Bonds, gold and Japanese Yen as investors flee to safe havens.
  • Glove and mask manufacturer stocks as demand spikes.
  • Selected biotechnology stocks that may produce antibodies or vaccines.

Example: Top Glove Corporation Bhd ($topglov)

[stock_market_widget type=”chart” symbol=”TPGC.KL” chart=”line” range=”1mo” interval=”1d” line-color=”rgb(49, 125, 189)”]

Example: Gold ETF ($gld)

[stock_market_widget type=”chart” symbol=”GLD” chart=”line” range=”1mo” interval=”1d” line-color=”rgb(49, 125, 189)”]

 

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