South Korea’s Kospi slipped 1.68%, the Nikkei 225 slipped 0.96%, the Topix index shed 0.98% and the S&P/ASX 200 slipped 1.34%.
The IMF said in its World Economic Outlook update that, “the Covid-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast.”
Chinese markets would be seeing more consolidation even as data released from the IMF sees sharp contraction in GDP growth with largest countries seeing negative growth due to extended lockdown, IMF added.
US indices closed lower as Dow Jones had its biggest correction in over 2 weeks falling over 700 points as fear over rising Covid-19 cases saw severe bout of profit booking. Technology stocks also joined the sell-off with the Nasdaq closing down over 2%.
Oil prices also saw their biggest decline in 2 weeks with bond yields staying near 0.7%.