There are growing fears over the fallout from the new coronavirus that has so far killed more than 1,800 people and infected nearly 72,500, mostly in mainland China (VIVEK PRAKASH)

Hong Kong (AFP) – Asian markets tumbled Tuesday after Apple warned the new coronavirus had hit output and demand in China, fuelling fears over the wider impact of the epidemic on corporate earnings and economic growth.

Investors looked past a positive lead from European bourses to focus on the spiralling fallout from the virus that has so far killed more than 1,800 people and infected nearly 72,500, mostly in mainland China.

As well as denting company bottom lines, the virus has sparked panic buying, economic jitters and the cancellation of high-profile sporting and cultural events. 

“Best to buckle in as we could be in for a bumpy ride (over) the next few weeks,” said Stephen Innes of AxiCorp.

“I’m struggling to find any research report that doesn’t suggest (COVID-19) could significantly affect short term earnings.”

Apple suppliers in Asia were hit by the tech giant’s warning that it would miss its quarterly revenue forecast because of the virus, dragging markets lower.

Tokyo’s benchmark Nikkei 225 index fell 1.2 percent, deepening losses a day after data showed the economy shrank in the December quarter, even before the effects of the virus hit Japan. 

Hong Kong was down 1.2 percent and mainland China’s benchmark Shanghai Composite Index slipped 0.2 percent. 

Elsewhere, Singapore fell 0.6 percent as investors digested the government’s decision to cut its economic growth forecast for this year as the virus batters the city state’s tourism and trade.  

Seoul was off 1.5 percent and Taipei lost 0.6 percent. Sydney shed 0.3 percent.  

Investors have taken some comfort from a slowdown in new infections outside hardest-hit Hubei province, which Chinese officials say is a sign that the outbreak is under control.

But World Health Organization chief Tedros Adhanom Ghebreyesus said the trend “must be interpreted very cautiously”.

IMF chief Kristalina Georgieva said Sunday there could be a cut of around 0.1-0.2 percentage points to global growth but stressed there was much uncertainty about the virus’s economic impact.

Moves by China’s central bank on Monday to cushion the world’s second-largest economy against the health crisis appear to have done little to allay concerns. 

European markets were higher after Eurogroup chief Mario Centeno predicted the coronavirus would have a “temporary” impact on the eurozone and the WHO warned against over-reacting about the epidemic. 

US markets were closed for a holiday.

– Crude hit –

China is the world’s biggest importer and consumer of oil, and crude prices have been particularly sensitive to the epidemic that has spread to nearly 30 countries and territories. 

Global oil demand will suffer its first quarterly drop in a decade as the virus lashes China’s economy and its impact ripples throughout the world, the International Energy Agency warned last week.

Brent Crude fell 0.9 percent and West Texas Intermediate was down 0.5 percent.

Gold, seen as a safe haven in times of uncertainty, was up 0.40 percent. 

– Key figures around 0300 GMT –

Tokyo – Nikkei 225: DOWN 1.2 percent at 23,237.44

Shanghai – Composite: DOWN 0.2 percent at 2,977.61 

Hong Kong – Hang Seng: DOWN 1.2 percent at 27,636.86 

Euro/dollar: DOWN at $1.0829 from $1.0834 at 1640 GMT Monday 

Dollar/yen: DOWN at 109.68 from 109.93 

Pound/dollar: DOWN at $1.3000 from  $1.3012  

Euro/pound: UP at 83.30 pence from 83.26 pence 

Brent Crude: DOWN 0.9 percent at $57.17 per barrel

West Texas Intermediate: DOWN 0.5 percent at $51.78

London – FTSE 100: UP 0.3 percent at 7,433.25 points (close)

New York – CLOSED for holiday

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.