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Asian Markets Dip as South Korea Tanks 3%

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Trade volume was a bit thin today in the Asian and Pacific Rim as the financial markets in Japan were closed for a public holiday. The South Korean Kospi composite index is down three percent after Seoul raised its coronavirus threat alert to its “highest level” as the number of cases spiked higher.

On the mainland, in China, the Shanghai composite is down over 0.44 percent and the smaller Shenzhen composite is up 0.4 percent.

In Hong Kong, the benchmark Hang Seng index is down over one percent by 1 pm.

Elsewhere in the Asian and Pacific Rim, the Australian ASX 200 was down over two percent as all sectors fell lower.

The Asian benchmark in Seoul, South Korea tanked as it led the region lower. The Kospi composite index, by 1 pm Hong Kong time, was down three percent. The Kosdaq was down over 2.5 percent. The Korean won was also trading lower against the U.S. dollar.

Asian Traders Concerned as Coronavirus Cases Spike Higher

South Korea has raised its coronavirus threat level to the “highest level.” Monday morning, the Korea Centers for Disease and Control and Prevention said that seven people are confirmed dead from the coronavirus (COVID-19). The number of infected cases spiked higher as well, as another 161 new cases are known in the peninsular nation.

China also saw the number of those infected gain ground.

This news is weighing heavily on global equity futures. Risk-off sentiment is taking hold with global market participants. Traders are looking for safe haven asset classes to park their money.

Regional and Global Traders watch U.S. Election News

Democratic runner for U.S. President Bernie Sanders is projected to win Nevada as he is fast becoming the Democratic front runner for that party’s nomination.

On the economic data front, U.S. business activity in both the manufacturing and services hit a wall in February. Companies are increasingly worried about the coronavirus outbreak. This was according to purchasing managers’ indices (PMI) data released on Friday.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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