Chinese equities plunged almost eight per cent yesterday as traders returned from their extended Lunar New Year break, hit by fears that the deadly coronavirus could hammer the country’s economy.

The steep losses led another sell-off across Asia following a painful week for global markets with the virus death toll topping 360 people and more than 17,000 infected, and governments around the world banning flights to and from China.

Oil prices hit 13-month lows at the start of Asian trading on expectations that crude demand could slide as the virus hits economic output. Opec members and their ally Russia will convene a technical meeting this week to analyse oil price falls since the outbreak of a coronavirus epidemic, a source close to the cartel said on Sunday.

Brent North crude dropped to $55.42 per barrel and WTI to $50.42 yesterday, the lowest levels since January 2019. Prices recovered in European trading.

In foreign exchange, sterling slid more than one per cent versus the dollar, hit by worries over post-Brexit trade deal negotiations after Britain’s exit from the European Union last Friday, dealers said.

The pound’s tumble helped to lift London’s benchmark FTSE 100 index.

Sterling’s slide is “generally good for companies whose shares are priced in pounds but who earn in foreign currencies including the dollar”, noted Russ Mould, investment director at AJ Bell.