Markets have traditionally "reacted most negatively" to unknown ailments, tending to plunge extra throughout epidemics as in comparison with pure disasters reminiscent of earthquakes and storms, in accordance with Credit score Suisse.

Illness outbreaks have led to longer market declines and rebounds which are much less sharp as in contrast with crises which are introduced on by pure disasters, in accordance with the funding financial institution, which studied crises in Asia Pacific going again to the 12 months 2000.

The present coronavirus outbreak has been referred to as a real "black swan" occasion, which means an inconceivable and unexpected occasion. It has roiled markets, together with these throughout Asia Pacific, which have declined 10% to 12% from latest highs. Many have fallen into bear territory.

"Traditionally, the market has reacted most negatively to unknown ailments, given the uncertainty related...