Stocks in Asia fell in early trade on Monday as investors continue to assess the economic impact of the global coronavirus pandemic that continues to spread rapidly.
Meanwhile, shares in Australia edged higher in morning trade, with the S&P/ASX 200 up 0.8%. That followed a more than 5% drop on Friday.
Overall, the MSCI Asia ex-Japan index traded 0.14% lower.
Investors continue to watch for developments on the global coronavirus outbreak, which has already infected more than 691,000 worldwide and taken at least 32,000 lives, according to the latest data compiled by John Hopkins University. Markets have been volatile in recent weeks, seeing sharp movements in both directions as authorities across the globe announced vast amounts of stimulus to stem the economic impact of the virus.
“The big question for markets is whether the huge stimulus introduced so far across the globe will be enough to help the global economy withstand the economic shock from the COVID-19 containment measures,” Rodrigo Catril, a currency strategist at National Australia Bank, wrote in a note.
“To answer this question one needs to know the magnitude of the containment measures and for how long they will be implemented,” Catril said. This was “unknown” at this point, he said, and suggests that markets are “likely to remain volatile” until the uncertainty is resolved.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 98.291 after declining from levels above 100 last week.
The Japanese yen, often seen as a safe-haven currency, traded at 107.50 per dollar after strengthening from levels above 110 last week. The Australian dollar changed hands at $0.617 after rising from levels below $0.6 in the previous week.