As the week began many had thought and expected that the ongoing war waged in China against the Coronavirus started to settle down. Japanese Yens in vital struggle South Korean exports still fell USD safe haven the option of most. Markets continued to operate without major deterioration, as Peking seemed to control the situation well. There are no significant changes in the economic situation in China, but those of its peers in the Asia-Pacific region are upside down as we reach the weekend. Two deaths in Japan and an upsurge in neighboring Korea suddenly brought the country into a very difficult economic condition.
Japanese Yen and Economy Combating fights The Japanese Yen has usually suffered its worst four-day stretch in over two years and is a respectable safe haven in times of trouble. The notoriously stable currency has fallen more than 2% in this short period. Before a small recovery in market trading today, traders may experience fear. For example, this decline has to do with the present situation and with how the epidemic has impacted both commerce and tourism.
There are concerns of a slowdown, including David Bloom’s head of FX at HSBC who says, “New cases of coronavirus in Korea and Japan have given people cold feet about Japan and the Yen as a safe haven.” It definitely appears to be true at least for the moment.
South Korea Another survivor In recent days South Korea has been the most significant increase in virus cases. Cases have nearly doubled in just 24 hours. In response to remarks from the Director-General of the WHO on how events indicate a further sharp increase, Korean stocks declined by almost 1.5% overnight.
Traders and the general public certainly hope that the comments of the director-general will not ring true, even though China’s exports to China have already plummeted significantly for February due to the instability of supply chains. In the region, South Korea may play a major linking position, so it is no wonder that the market is responding to the surge in this way.
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This pattern will persist at least until the concerns of the virus are high. But, as soon as that happens and what damage has been done to the world economy by then, few can guess.
Despite the positive steps of the day, the couple and the broader economy also face challenges. On a more or less domestic level, the discussions on the future relationship between the UK and the EU are continuing. Today’s new titles reveal that the UK is committing to an entrance scheme based on points, which will severely limit the prospects for unqualified foreign workers.
Eventually, the Coronavirus issue remains unresolved in China. There are few headlines but the epidemic still limits business operations in China and overseas. This widespread instability in the supply chain is seen as the backdrop to the Apple profits alarm and both the DOW and the NASDAQ, which are heavily dependent on the Chinese market.
