SYDNEY (Reuters) – Asian shares sank on Monday as a rising tide of national lockdowns threatened to overwhelm policymakers’ frantic efforts to cushion what is likely to be a deep global recession.
A currency dealer works in front of electronic boards showing the Korea Composite Stock Price Index (KOSPI) and the exchange rate between the U.S. dollar and South Korean won, in Seoul, South Korea, March 23, 2020. REUTERS/Heo Ran
In a foretaste of the pain to come, E-Mini futures for the S&P 500 dived 5% at the open to be limit down, while EUROSTOXXX 50 futures tumbled 6.4%.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 3.8%, with New Zealand’s market shedding a record 10% as the government closed all non-essential businesses.
Shanghai blue chips dropped 2.3%, though Japan’s Nikkei rose 0.8% aided perhaps by expectations of more aggressive asset buying by the Bank of Japan.
There was little to cheer in coronavirus news as the global death toll exceeded over 14,000 with more than 300,000 infections.
Airlines canceled more flights as Australia and New Zealand advised against non-essential domestic travel, the United Arab Emirates (UAE) halted flights for two weeks and Singapore and Taiwan banned foreign transit passengers.
Nearly one in three Americans were ordered to stay home on Sunday to slow the spread of the disease,