US, Japan pull nationals from China, big virus economic hit forecast
BEIJING/SHANGHAI (Reuters) - The United States and Japan flew nationals out of China’s virus epicenter on Wednesday and some big-name airlines suspended flights as deaths leapt to 133 and a senior economist predicted a major impact on growth.
Beijing’s plans to slay the “devil” coronavirus may have won the trust of the World Health Organization (WHO), but confirmation of another 1,459 cases - taking the total to 5,974 in China - only fueled global public alarm.
Deaths from the flu-like virus also rose by 27 to 133.
Almost all have been in the central province of Hubei, the capital of which is Wuhan, where the virus emerged last month in a live wild animal market.
The situation remained “grim and complex”, Chinese President Xi Jinping acknowledged. In many Chinese cities, streets were largely deserted with the few who ventured out wearing masks. Starbucks coffee shops required people to have temperatures taken and masks on.
“It’s my first time here in Asia, I feel very unlucky,” said Brazilian tourist Amanda Lee, 23, cutting short a trip. “I couldn’t even see the places I wanted, like the Great Wall.”
There was relief, however, among evacuees from Hubei province, home to about 60 million people and under virtual lockdown. “I was extremely worried that I was stuck there,” said Takeo Aoyama, who arrived in Tokyo on a chartered plane carrying 206 Japanese out of Wuhan.
The United States flew about 210 citizens out of Wuhan, to be screened several times on arrival in California. Britain said it would put 200 citizens on a charter plane on Thursday.
The virus is weighing heavily on the world’s second-biggest economy, with companies cutting corporate travel to China and tourists cancelling trips. Various airlines are cutting flights, from British Airways and Lufthansa to Tanzania’s national carrier that postponed maiden flights.
A government economist said the crisis could cut China’s first quarter growth by one point to 5% or lower as the crisis hits sectors from mining to luxury goods.
Hong Kong stocks took a beating on the first day of trading after the Lunar New Year break. Casino and financial stocks led the Hang Seng index 2.5% lower to a seven-month trough.
Regional markets, however, arrested their slide, with stocks in Japan, Australia, South Korea and India steady or firmer and currencies mostly stable.
“In our view, the worst is yet to come,” securities firm Nomura said, warning of a severe, near-term blow to China’s economy.