Coronavirus panic in markets wipes US$ 14 trillion in a month
Global stock markets crashed on Friday, ending a years-long bull run, with coronavirus panic selling hitting almost every asset class and leaving investors nowhere to hide. Half a trillion dollars in liquidity from the U.S. Federal Reserve and the promise of more were not enough to calm the fear that has wiped some US$14 trillion from world stocks in a month.
On Friday, Japanese stocks were in freefall and markets from Seoul to Jakarta punched through down limit circuit breakers. The Nikkei dropped as far as 10% and is heading for its worst week since the 2008 financial crisis. Not one stock on the index is in positive territory.
Losses were equally staggering outside Japan, driving MSCI’s broad Asia-Pacific index back to where it was in 2017. Gold and oil fell and once-safe sovereign bonds slumped as investors liquidated everything they could to cover losses.