Forex News

Too premature to make assessment on quantitative impact of coronovirus outbreak on Asian economies

A senior official at the International Monetary Fund (IMF) told Reuters on Wednesday, it is too premature to make an assessment on the quantitative impact of China coronavirus outbreak on the Asian economies.

Key Points:

IMF Managing Director will discuss the impact of coronovirus outbreak on global growth at upcoming G20 finance leaders’ meeting.

Coronavirus impact definitely poses increased downside risk to Asia especially on countries having close ties with China.

Japan, if necessary, can do more fiscal measures to maintain economic growth.

China has room to take fiscal, policy steps if its economy slows more but we hope they stick with structural reform.

Japan’s expected weak Oct-Dec GDP number is in line with IMF’s current forecast for country’s growth outlook.

This comes after China’s National Health Commission (NHC) reported that Across mainland China, there were 2,015 new confirmed infections on Tuesday, the lowest since Jan. 30. The total accumulated number so far has reached 44,653.

Meanwhile, the risk sentiment remains buoyed by receding coronavirus fears, as USD/JPY looks to regain 110.00, helped by a rebound in the US Treasury yields and mild gains in S&P 500 futures.

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