The stock indexes in the Asia Pacific declined on Monday, led by losses in South Korea after officials raised its coronavirus alert to the "highest level" after a fast spike in cases over the weekend.
In reaction to the growing loss of life toll and the variety of coronavirus instances, the decline in stock indexes has also dented the mobile phone and travel sectors at risk.
Mobile Phone Industry at Risk
On Saturday, Feb. 23, Samsung Electronics said one coronavirus case had been confirmed at its mobile device manufacturing unit in the southeastern city of Gumi, inflicting a shutdown of its complete facility there until Monday morning.
Samsung Electronics, one of the world's top smartphone producer, said the unit in which the infected worker labored would be closed down until the Monday morning of Feb. 25.
Samsung's manufacturing facility in Gumi owed for a small part of its total smartphone production, and it makes high-end phones, in most cases, for the home market. Samsung, however, builds most of its smartphones in Vietnam and India.
As the outbreak of the coronavirus bent the cellphone industry, Apple cautioned the virus would take a toll on the tech sector's revenues. Thanks to manufacturing facility shutdowns, delays, and store closures.
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Analysts are saying that Chinese phone giant Huawei has been shy about coronavirus impact, with one executive pointing out there would be no impact on its global delivery chain over the next three to six months.
However, analysts are profoundly skeptical and say Huawei might be more affected than Apple since it is exceptionally reliant on Chinese purchasers for phone business.
Asia Pacific Airlines Take Another Toll Due to Travel Restrictions
Airline stocks in the Asia Pacific area are down sharply amid contagion fears. In Australia, Qantas Airways plummeted 7.22% at the same time as Hong Kong-listed stocks of China Eastern Airlines and China Southern Airlines each fell extra than 4% each.
According to Reuters, South Korea's Korean Air Lines and Asiana Airlines said on Monday, Feb. 24, they're suspending flights to Daegu, the country's fourth-biggest city with the largest number of coronavirus cases as of writing.
Korean Air has decided to halt all flights to Daegu until Mar. 28, while Asiana will stop all flights to the city until Mar. 9, their representatives said.
The sales of South Korea's Korean Air Lines and Asiana Airlines dropped 5.52% and 5.54%, respectively.
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SoKor President Moon: Coronavirus caused grave turning point
On Monday morning, the Korea Centers for Disease and Control and Prevention said that seven people have died from COVID-19. The variety of instances has risen to 161 new instances, bringing the total to 763 nationwide - the united states with the maximum instances out of doors the mainland.
In reaction to the growing loss of life toll and the variety of coronavirus instances, South Korea has raised its virus outbreak alert to the "highest stage" as showed case numbers preserve rising.
"The COVID-19 incident faces a grave turning point," South Korean President Moon Jae-in said, following an assembly with ministers and experts.
"The following couple of days could be crucial. The government will enhance the alert degree to the highest stage of 'grave' consistent with experts' pointers and significantly give a boost to our reaction system."
On Monday at 06:52 GMT, Japan's Nikkei Index is buying and selling stocks for 23386.74, down 92.41 or -0.39%. Hong Kong's Hang Seng Index is at 26873.86, down 434.95 or -1.59%, and South Korea's KOSPI Index is at 3032.88, down 6.79 or -0.22%.
China's Shanghai Index is buying and selling in 3032.79, down 6.88 or -0.23%, and Australia's S&P/ASX 200 Index closed at 6978.30, down 160.70 or -2.25%.
