LONDON, Feb 21 — A spike in new virus cases outside China spooked markets today after Wall Street pulled back from record highs as companies warned their earnings could be hurt by the epidemic.

“Coronavirus was back at the top of the agenda on Friday, with a rising number of new cases in China and South Korea putting the fear in investors,” said Spreadex analyst Connor Campbell.

Europe’s main stock markets slumped despite upbeat manufacturing survey data, after virus-linked losses in most of Asia and overnight on Wall Street.

More than 2,200 people have died from the novel coronavirus, which has infected over 75,000 people mostly in China — and spread panic around the world.

Two more people died from the virus in Iran, infections nearly doubled in South Korea and clusters surfaced in Chinese prisons today, rekindling concerns about the outbreak.

“European markets are following their Asian counterparts lower ... with a sharp rise in coronavirus cases ensuring that risk appetite remains a key concern for traders,” said IG analyst Joshua Mahony.

“The spread of coronavirus throughout two Chinese prisons provide another example of the dangers associated with controlling the spread of a virus in densely populated quarters.”

‘Batch of warnings’

A batch of warnings from companies over the impact of the virus on bottom lines — including Danish ship operator Maersk and Air France-KLM — and weaker manufacturing data in Japan also fanned anxiety.

Initial hopes that the virus would have only a short-term impact on earnings and economic growth have given way to the reluctant realisation that it could linger.

In Asia, the stock market in Seoul fell by 1.5 per cent as South Korea confirmed 48 more virus cases this afternoon, adding to 52 it announced in the morning and taking the country’s total to 204.

Tokyo closed down 0.4 per cent as investors took to the sidelines ahead a long weekend.

On the upside, Shanghai rose by 0.3 per cent following central bank efforts to cushion the impact of the virus on the world’s second-largest economy.

In commodity markets, crude oil prices swung sharply lower once again on Chinese demand fears.

China is the world’s biggest importer and consumer of oil — and prices have been particularly sensitive to the epidemic affecting dozens of countries and territories.

At the same time, demand for haven investment gold has benefited from the spreading virus as investors reduce their risk exposure.

Key figures around 1145 GMT

London – FTSE 100: DOWN 0.3 per cent at 7,416.11 points

Frankfurt – DAX 30: DOWN 0.1 per cent at 13,654.40

Paris – CAC 40: DOWN 0.2 per cent at 6,051.88

EURO STOXX 50: DOWN 0.2 per cent at 3,816.67

Tokyo – Nikkei 225: DOWN 0.4 per cent at 23,386.74 (close)

Shanghai – Composite: UP 0.3 per cent at 3039.67 (close)

Hong Kong – Hang Seng: DOWN 1.1 per cent at 27,308.81 (close)

New York – Dow: DOWN 0.4 per cent to 29,219.98 (close)

Euro/dollar: UP at US$1.0814 from US$1.0785 at 2200 GMT

Pound/dollar: UP at US$1.2921 from US$1.2882

Euro/pound: DOWN at 83.69 pence from 83.72 pence

Dollar/yen: DOWN at 111.70 from 112.10

Brent Crude: DOWN 1.8 per cent at US$58.25 per barrel

West Texas Intermediate: DOWN 1.6 per cent at US$53.05

— AFP