STI adds 1.2% on the week despite Covid-19 fears

INVESTMENT sentiment in Asia ebbed and flowed across the week on the changing outlook of Covid-19 outbreak. The virus has now infected more individuals and led to more deaths than 2003's severe acute respiratory syndrome (Sars) epidemic.

While stocks dipped on Monday, they staged a strong but short-lived recovery in the next two sessions. Sentiment surged on reports of a decrease in the number of new cases in China, where the vast majority of those suffering from Covid-19 reside, as well as hopes of further stimulus measures by the Chinese central bank.

This all changed on Thursday when the Chinese authorities started using a new method of diagnosis which resulted in a ballooning of Covid-19 cases and fatalities. New cases may have fallen on Friday but investors are still left wondering just how long it will take to contain the virus.