Kospi Composite Sheds over 3%

The headline equity bourses in the Asian and Pacific Rim were bleeding on Tuesday as Asian traders are concerned about the fast spreading viral coronavirus out of China.

Safe haven asset classes, like gold and the Japanese yen are seeing support as at risk assets like equities are falling lower.

The financial markets in China and Hong Kong are closed for the Lunar New Year holiday.

To date, the viral outbreak, called the coronavirus, which is respiratory virus, has killed 106 people and there are 1,515 people reported infected around the world.

China says that the virus is gaining strength, spreading and having an impact on travel and the economy.

Nations are recalling works and official staff as fears grow that the coronavirus will become a full blown global pandemic.

The headline South Korean Kospi composite index is down over 3.2 percent by the mid-afternoon. In Singapore, the Straits Times index is down over 2.5 percent.

In Japan, the Asian benchmark, the Nikkei 225 is down about three quarters of a percent as is the Topix index in Tokyo.

In Australia, the benchmark ASX 200 was down over 1.5 percent as most sub-sectors were in the red by the afternoon.

Asian Traders Worry about Travel Restrictions in and out of China

Nations are starting to restrict non-essential travel to China as the outbreak gains strength and spreads.

The United States is warning citizens against travel to and from China. This warning includes other countries. The U.S. State Department has placed advisories on travel into and out of the region as the death is now above 100 people. This has left millions of Chinese stranded during the Lunar New Year holiday.

Travel restrictions will have a negative impact on economic growth in China and the region.  The demand for gasoline, oil and jet fuel is already under pressure.