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The Nikkei 225 in Japan slipped 1.85% in morning trade after dropping more than 3% on Tuesday. The Topix index also saw a 1.7% decline. South Korea’s Kospi fell 1.67% while the Kosdaq dropped 1.46%.
Mainland Chinese stocks fell in early trade as the Shanghai composite shed about 1%. The Shenzhen component also slipped 1.25% while the Shenzhen composite declined 0.995%. Hong Kong’s Hang Seng index also fell 1.25%.
In Australia, the S&P/ASX 200 was down 2.11% as the sectors traded lower.
Overall, the MSCI Asia ex-Japan index traded 1.28% lower.
Hong Kong is set to announce its budget on Wednesday, with Financial Secretary Paul Chan expected to present the 2020-21 Budget to the Legislative Council around 11 a.m. HK/SIN and a news conference set for 3:00 p.m. HK/SIN.
On the economic data front, January industrial production data for Singapore is expected to be out around 1:00 p.m. HK/SIN on Wednesday.
Investors will continue watching for updates on the coronavirus outbreak that is spreading outside of China, with a top U.S. health official warning Tuesday it will likely become a global pandemic.
There has been a recent spike in coronavirus cases outside of China, where the disease was first reported. South Korean authorities have confirmed more than 900 cases within the country’s borders. Meanwhile, Italy has been the worst affected country outside of Asia, with more than 200 reported cases. Iran also confirmed at least 12 deaths.
Overnight on Wall Street, stocks plunged for a second straight session. The Dow Jones Industrial Average plummeted 879.44 points to closed at 27,081.36 — posting back-to-back losses of at least 800 points for the first time ever. The S&P 500 slid 3% to end its trading day at 3,128.21, posting back-to-back declines of 3%. The Nasdaq Composite fell 2.8% to close at 8,965.61.
The moves stateside came amid a confluence of factors, such as top Centers for Disease Control and Prevention (CDC) official Dr. Nancy Messonnier telling reporters on a conference call that the American public should prepare in the expectation that the coronavirus situation in the U.S. “could be bad.”
Movements in the bond markets also spooked investors, with the benchmark 10-year Treasury yield hitting an all-time low. The 30-year U.S. bond yield also reached a record low. Bond prices move inversely to yields. The 10-year Treasury yield was last at 1.3388%.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.028 after seeing highs above 99.3 yesterday.
The Japanese yen traded at 110.21 against the dollar after strengthening from levels above 110.4 seen yesterday. The Australian dollar changed hands at $0.6593 after seeing levels around $0.662 yesterday.
Oil prices rose in the morning of Asian trading hours, with international benchmark Brent crude futures up 0.71% to $55.34 per barrel. The U.S. crude futures contract also gained 0.84% to $50.32 per barrel.