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It’s clear investors are betting policymakers, including in Australia, will do whatever it takes to prevent the coronavirus crisis from becoming the next financial crisis.

While Chinese stocks plunged on Monday, seeing the Shanghai Composite erase all of its gains over the past year in a matter of minutes as trade resumed following an extended Lunar New Year holiday, there was little to no sign of panic across the broader Asian region.

Global equity markets continue to hover near record highs despite China's coronavirus outbreak.

Global equity markets continue to hover near record highs despite China’s coronavirus outbreak. Credit:AP

Having tumbled as much as 1.7 per cent on the open, mirroring similar declines in US and European equities on Friday, Australian investors wasted little time in “buying the dip”, seeing the benchmark S&P/ASX 200 quickly move off its earlier lows to eventually close down 1.3 per cent.

Despite warnings about the impact recent bushfires and coronavirus outbreak will have on the Australian economy, especially in the near-term, the benchmark Australian share index has only fallen 3.1 per cent from the record highs hit in late January.