Asian shares slumped on Tuesday amid rising concerns about the coronavirus in China ahead of the Lunar New Year holiday travelling. Chinese authorities confirmed it could be spread through human contact and more than 220 cases have been reported. The World Health Organization announced Monday that it was convening an emergency meeting on the coronavirus. Investors were also digesting the World Economic Outlook released Monday where the IMF cut its global growth forecast for 2019, 2020 and 2021, due to negative surprises to economic activity in a few emerging market economies, notably India, and the impact of increased social unrest. The Shanghai Composite lost 44 points or 1.4% to 3052. In Hong Kong, the Hang Seng slumped 811 points or 2.8% to 27985 after Moody's rating downgrade. The Nikkei 225 declined 219 points or 0.9% to 23865, even after the BoJ left rates steady and revised its GDP growth forecasts. The Kospi finished 23 points or 1% lower at 2240. Historically, the China Shanghai Composite Stock Market Index reached an all time high of 6124.04 in October of 2007.
The China Shanghai Composite Stock Market Index is expected to trade at 3036.26 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2900.92 in 12 months time.