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Investors Shift Toward Safe Heavens Amid Coronavirus Epidemic, Stocks, Oil Drop

Global Shares rumbled Monday as investors grew more and more anxious concerning the economic impact of China’s spreading virus epidemic, with demand spiking for safe-haven assets such as the Japanese yen and Treasury notes.

Japan’s Nikkei average slipped 2.0%, the biggest one-day plunge in five months, while a Tokyo-listed China proxy, ChinaAMC CSI 300 index, slipped 2.2%. Many markets in Asia were closed amid the Lunar New Year holiday.

U.S. S&P 500 mini futures had been down 1.0%, having fallen 1.3% in early Asian trade.

European shares had been anticipated to follow suit, with main European stock futures trading 1.2-1.4% lower.

The capability of the coronavirus to spread is getting stronger, and infections may proceed to rise, China’s National Health Commission stated Sunday, with practically 2,800 folks globally infected and 81 in China killed by the illness.

China declared it is going to extend the week-long Lunar New Year holiday by three days to February 2, and faculties will return from their break later than usual. Chinese-dominated Hong Kong said it might ban entry to people who have visited the Hubei region in the last 14 days.

Market participants kept an eye on developments around the virus, which the WHO final week deemed “an emergency in China,” however not, as yet, for the rest of the world.

MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.4%, though trade in the area has already slowed for the Lunar New Year and different holidays, with monetary markets in China, Hong Kong, Taiwan, South Korea, and Australia closed Monday.

All three major Wall Street indexes settled sharply lower Friday, with the S&P 500 seeing its biggest one-day share plunge in over three months.