TOKYO — Asian shares skidded again Tuesday on deepening worries over the expanding outbreak of a new virus in China.
Markets in Hong Kong and mainland China were closed Tuesday for Lunar New Year holidays, while South Korea’s 180721, -3.09% benchmark tumbled 3.2% as it reopened after its own holidays.
China has extended its national holiday by three days so that offices should reopen on Monday. Shanghai’s holiday was extended until Feb. 9.
Overnight, a sell-off on Wall Street gave the Dow its first 5-day losing streak since early August and handed the S&P 500 its worst day since early October. The latest bout of selling on Wall Street came after China announced a sharp rise in cases of the virus.
“How long and how deep the correction lower will last, depends both on the success of China’s efforts to control the viral spread, and the prevalence of its occurrence internationally,” Jeffrey Halley of Oanda said in a commentary.
Airlines, resorts and other companies that rely on travel and tourism suffered steep losses. Gold prices rose as did bonds as traders sought refuge in safer holdings.