Shanghai stocks decline $370 billion in market cap as virus fears hit Chinese markets

Chinese stock and commodity markets plunged on Monday’s opening as investors ditched risky assets due to rising concerns on the coronavirus spread.

The market drop took away nearly $370 billion, or 9% lower in market capitalization from the Shanghai Composite index .SSEC.

The yuan opened at its lowest level this year, slipping 1%, past the 7-per-dollar level in onshore trade CNY=.

Oil, copper, iron ore, and soft commodities traded in Shanghai all showed heavy declines.

Death toll on the virus outbreak in China rose to 361 with the infected number of people at 17,205. When Chinese markets last traded on Jan. 23, death toll stood at 17 with infections at 600.

The virus has raised alarms due to its quick outspread with most of its origins unknown. The outbreak, as well as international government’s drastic responses could negatively impact global growth.

The Chinese central bank announced its intent to support the economy by apportioning bigger funds into markets and cutting 10-basis-point to its regular reverse repos.

In mid-morning, the Shanghai Composite declined by 8%, at 2,734.1, the lowest since August.

Shanghai crude oil ISCCv1, Shanghai copper SCFCv1, and Dalian iron ore DCIOCv1 fell by their daily down limits.