Sell-offs in Australian shares deepened on Wednesday as the rapid spread of coronavirus beyond China sparked fears that the outbreak could turn into a pandemic that could derail the global economy.
The S&P/ASX 200 index <.AXJO> fell 2.3%, or 158.50 points, to 6,708.10, its lowest close in nearly two months. It has lost 6.3% in the past four sessions.
During the same period, MSCI's World Index <.MIWO00000PUS>, a market cap-weighted stock market index of 1,644 stocks from companies throughout the world, saw its total value fall by $3 trillion to $42.98 trillion.
Fears of a global pandemic deepened after Asia reported hundreds of new coronavirus cases, the United States warned of an inevitable pandemic, and outbreaks in Italy and Iran spread to other countries.
The flu-like virus, which is believed to have originated in the Chinese city of Wuhan late last year, has infected about 80,000 people and killed more than 2,700, the vast majority in China.
On Tuesday, a World Health Organization expert said countries need to prepare immediately for an outbreak of the virus so they can respond rapidly when it arrives.
In Australia, selling was broad-based, with 185 of the 200 stocks on the benchmark index closing in the red.
Financial stocks <.AXFJ> were the biggest drag, down 2%, with the "Big Four" banks declining between 1.7% and 2.1%.
AMP Ltd <AMP.AX> tumbled 4.7% to close at its lowest level since Feb. 14.
Energy stocks <.AXEJ> dropped 2.4% to their lowest close since August 2019, with Woodside Petroleum <WPL.AX> shedding 3% to close at its lowest in nearly two years.
The company adjusted its stakes with BHP Group <BHP.AX> for two of its permits in the Scarborough project.
Virgin Australia <VAH.AX> slipped 4.2% to a record low after the company flagged a capacity cut and warned that its bottom line would take a hit as the coronavirus outbreak erodes demand.
Meanwhile, Woolworths Group Ltd <WOW.AX>, the country's largest supermarket chain, posted a jump in first-half profit but warned of softer trading ahead as drought and months of bushfires hurt the quality of its produce.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> slipped 1.6%, or 185.37 points, to finish the session at 11,533.86.
Sky Network Television <SKT.NZ> slumped 6.7%, while Port Tauranga <POT.NZ> shed 5.5%.
(Reporting by Shreya Mariam Job in Bengaluru; Editing by Subhranshu Sahu)
