Tokyo Stock Exchange falls, less damage to China's stock markets

  •   26/02/2020 - 14h51
  •   DEHOUI Lionel

The spread of the Coronavirus epidemic is causing panic and its repercussions are being felt even on Asian stock exchanges. Suspended for the entire Monday holiday, the Tokyo Stock Exchange has undergone considerable changes. The Nikkei indicator of the 25 best values fell by 3.3% from an initial level of 781.33 points to a lower level of 22,605.41 points. The extended Topix indicator fell by 3.81%.

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Tokyo Stock Exchange falls, less damage to China's stock markets
Image copyright: Dick Thomas Johnson - Flickr

Financial market position

The financial indicators of the Chinese markets have regained more or less unstable or variable positions. The Shanghai indicator fell by 0.60% to a level of 3,013.05 points. At the same time, the Shenzhen indicator regained a level of 1,943.17 points. Hong Kong's Hang Seng indicator rose significantly to a level of 0.13% 60 minutes before the stock market was suspended.

These macroeconomic impacts are also observed in other countries around the world. The European stock exchange indicates through certain indicators that there is a clear regression within the limit of 5%. The Paris stock exchange in particular experienced a 3.94% fall, while the Madrid stock exchange experienced a 4.07% decline. It is almost the same for Milan, which is down 5.43%, while London is down 3.34%.

While the stock market shares were losing value day by day, assets that represent material goods and investors turned to safe havens to safeguard their shares. All of these changes due to the effects of the coronavirus are cause for great concern and reflection. The words of Dôm's financial manager, Daniel Larrouturou, accentuate these questions. The market is concerned that the increase in cases outside China could result in a global pandemic that could have significant macroeconomic repercussions," he said. He goes on to say: "As long as we had the impression that the epidemic was confined to China, there was less cause for concern. Now that cases are multiplying outside China, South Korea, Iran and now Italy, markets are reassessing the possible macroeconomic impacts".

Coronavirus is spreading more and more (gradually) through the surrounding areas in Afghanistan, Bahrain, Kuwait, Iraq and many other countries.

 

The recovery in jeopardy?

The epidemic is reaching strategic points such as Schengen Square, which is a very lively and eventful region. The spread of coronavirus even prompted WHO to declare the situation urgent on Monday, alerting the world to expect possible pandemics. One of the personalities such as Kristalina Georgieva also spoke about the risks and consequences of this virus. It suggested that the coronavirus had "disrupted economic activity in China" and could "jeopardize" the recovery of the global economy.

Also in the United States, a presidential economist said on Monday that the coronavirus is having a negative impact on the health of Americans.impact on the US economy and that the extent of the damage is not yet capitalizable.

Many hypotheses have been put forward about the human and financial ravages of the coronavirus epidemic on the world, but Tokyo has not yet been pulled out of its situation.