Could the Tokyo Olympics be cancelled due to the virus?

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The Tokyo Olympics Face Potential Cancellation Amidst Coronavirus Concerns

Growing concerns over the novel coronavirus outbreak have led to heightened worries about the potential cancellation of the 2020 Summer Olympics scheduled to commence in Tokyo in July. This uncertainty has significantly impacted Japan's stock market, making it one of the worst-performing markets in the region.
Impact on Japanese Equities

Japan's stock market has been particularly vulnerable to the escalating fears surrounding the virus. The Nikkei stock index experienced a decline, reflecting the broader market sentiment. Companies directly or indirectly involved with the Olympics have also seen their share prices fall. For instance, Dentsu Group Inc., an advertising agency heavily engaged in the planning and operation of the games, saw its shares drop to a seven-year low. Similarly, shares of sportswear manufacturers and other related businesses have also experienced recent downturns.
Global Market Reaction

The impact of the virus extends beyond Japan, with global markets experiencing significant volatility. Wall Street witnessed substantial losses, with the S&P 500 and Dow Jones Industrial Average shedding over 3 per cent in a single session. This broad market sell-off has been attributed to a combination of factors, including a warning from the US Centres for Disease Control and Prevention advising Americans to prepare for the possibility of a pandemic. The MSCI World index, representing global equities, has seen its total value decrease by approximately US$3 trillion (RM12.7 trillion) over a four-day trading period.
Safe-Haven Assets Rally

In response to the pervasive uncertainty, investors have gravitated towards traditional safe-haven assets. Yields on benchmark 10-year US Treasury notes have hovered near record lows, reflecting increased demand for these secure investments. Concurrently, the price of gold has risen as investors seek refuge from market instability. This shift in investment strategy underscores the widespread apprehension regarding the economic ramifications of the virus outbreak.

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Could the Tokyo Olympics be cancelled due to the virus?

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