Coronavirus enters worrying new phase as cases outside China rise
2 min read 22 Feb 2020, 12:51 AM ISTInvestors are wary of the impact of a wider regional outbreak on global growth and corporate earningsThe epidemic that emerged in early December has yet to become a pandemic, which is defined as a situation where the virus is spreading across multiple continents
PremiumSouth Korea’s cases have soared past 200. Those for Singapore and Japan have topped 85. And then there are the 600-plus from a quarantined cruise ship in Japan.
As the cases of coronavirus infections mount, worries are growing that the outbreak is entering a concerning next phase. Where China had the vast majority of cases and deaths before, there are now signs that infections are spreading more rapidly within other Asian countries beyond its borders. For now, China still remains the center of the crisis, with 75,000 infections. But as the number of net new cases there declines, attention is shifting to the risks in other countries where the growth in infections is accelerating. Anxiety is already creeping into global financial markets, as investors weigh the impact of a wider regional outbreak on economic growth and corporate earnings.
“The sudden jump in infections in other parts of Asia, notably in Japan and South Korea, has sparked renewed concerns," said Khoon Goh, Singapore-based head of Asia research at Australia & New Zealand Banking Group Ltd. “This points to a new phase in the outbreak, and one which will see continued disruption and more economic impact than previously thought."
The epidemic that emerged in early December has yet to become a pandemic, which is defined as a situation where the virus is spreading across multiple continents. So far, the numbers outside of China remain small: out of 2,247 deaths, only 11 have occurred in other regions. Yet there’s been a marked uptick in non-China cases this week. South Korea saw infections double in 24 hours, with a surge of cases tied to a cluster from a religious sect in Daegu. Most of the patients involve those who may have attended church services with a person who was confirmed with the virus earlier this week. South Korean health minister Park Neung-hoo said authorities are aware of transmission channels and the current situation is “manageable."
More alarming is the situation in Japan, which has emerged as one of the riskiest places outside China for the spread of the coronavirus. Health minister Katsunobu Kato said on Sunday that Japan had lost track of the route of some of the infection cases, which have tripled in the past week to more than 90.
For now, the World Health Organization says the situation is still manageable, but warns that if countries don’t take the situation more seriously, the spread will become a wider global threat. “The virus is very dangerous and it’s public enemy No. 1," director-general Tedros Adhanom Ghebreyesus said on Thursday.
