Oil, Asian markets plunge on fears of virus’ impact on global economy

BEIJING — Asian stock markets plunged Monday after oil prices nosedived on worries a global economy weakened by a virus outbreak might be awash in too much crude.

Tokyo’s benchmark tumbled 6.2%, while Sydney fell 6.1%. Seoul sank 4.4% and Hong Kong lost 3.9%. Shares also sank in Middle East trading on Sunday.

Saudi Arabia, Russia and other oil producers are arguing over how much to cut output to prop up prices.

Markets already were troubled by the potential impact of the virus outbreak that began in China and has disrupted travel and trade.

Anxiety rose after Italy announced it was isolating cities and towns with some 16 million people — or more than one quarter of its population.

Oil markets were roiled by a dispute among Saudi Arabia, Russia and other producers over how much to cut output to prop up prices.

“The underlying global markets tone remains negative, as Italy has moved to quarantine one-quarter of its population,” said Tai Hui of J.P. Morgan Asset Management in a report. Meanwhile, he said, “OPEC’s cooperation with Russia to support oil prices appears to have hit a major roadblock.”

Benchmark U.S. crude fell $10.77, or 26.1%, to $30.49 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, lost $11.44, or 25.3%, to $33.83 per barrel in London.

Tokyo’s Nikkei stock index 225 fell to 19,473.07 after the government reported the economy contracted 7.1% in the OctoberDecember quarter, worse than the original estimate of a 6.3% decline in annual growth. That was before the viral outbreak slammed tourism and travel but after a sales tax hike dented consumers’ appetite for spending.

Hong Kong’s Hang Seng sank to 25,134.73. The Shanghai Composite Index was off 2.2% at 2,967.31.The S&P-ASX 200 in Sydney fell to 5,840.70. The Kospi in Seoul declined to 1,950.02.

The number of infections from the virus that causes COVID-19 has topped 100,000 worldwide.

Investors are looking ahead to a meeting Thursday of the European Central Bank, which is widely expected to announce new stimulus measures.

CLAUDIO FURLAN/LAPRESSE VIA AP The Navigli nightlife district of Milan, Italy, is almost deserted Sunday after most bars were closed by the government trying to stem the threat of the coronavirus.