FACTBOX: Impact on Asian industry if flu virus spreads
(Reuters) - Worries about a potential global flu pandemic are unnerving financial markets after an outbreak in Mexico, with the dollar falling to its lowest in a month against the yen as investors shifted to perceived safe-haven currencies.
Following are some industries and companies that may be impacted by a spread of the virus.
SOUTH KOREA:
Shares in suppliers of chicken, beef and fish products and major pharmaceutical firms gained in early trading on Monday.
"Investors simply think people will buy other meats to replace pork. It's been that way with past disease outbreaks," said J.P. Kim, market analyst at Daewoo Securities.
Shares in chicken product makers Halim and Maniker gained 15 percent, while fisheries companies such as Oyang Fisheries, Sajodaerim Corp and Dongwon Industries gained more than 11 percent.
Shares in pharmaceutical firms also gained on bets that demand for anti-viral drugs could rise, analysts said.
CHINA:
Shares in pork producer Hunan New Wellfull slumped more than 8 percent, while biomedicines maker Inner Mongolia Jinyu Group Co and China Animal Husbandry Industry Co, a maker of animal health products, both jumped by their 10 percent daily limit. The benchmark Shanghai Composite Index was down 1.2 percent.
Analysts said investors worried that a flu outbreak could affect overseas trade and delay economic recovery.
"The index continues to consolidate. There's still uncertainty surrounding the flu situation (and) this has made investors jittery," said Haitong Securities analyst Zhang Qi.
AUSTRALIA:
Shares in airline Qantas fell 3.5 percent on concerns that swine flu could further dampen its international business.
"There is concern there will be some issues in terms of passenger traffic being impacted, particularly if the North American route gets impacted," said Leigh Gardner, head of distribution at ABN AMRO.
Shares in Biota Holdings, developer of the Relenza flu vaccine, soared 70 percent. The company receives royalties from Relenza's marketer GlaxoSmithKline.
Stuart Smith, private client adviser at Bell Potter Securities, reckoned Monday's rise in Australian stocks would be short-lived as global concerns over swine flu eventually take hold.
"Dow futures at the moment are down 115 because of the swine flu fear, so I'm expecting the (local) market to come off," he said.
HONG KONG:
Pharmaceuticals stocks rose, while pork product makers, trade, travel and tourism stocks declined.
China Pharmaceuticals which makes antibiotic finished drugs, jumped 10.5 percent, while Guangzhou Pharmaceutical gained 5.6 percent and Wuyi International Pharma soared 18.3 percent.
Yurun Food, a manufacturer of pork products, dropped 7.8 percent, while conglomerate China Resources Enterprises, which also has a pork producing unit, fell 4.6 percent in what analysts said was a knee-jerk reaction to concern about the disease.
Airline stocks dropped, with Cathay Pacific Airways down 6.6 percent and Air China off 9 percent. China Southern Airlines slid 12 percent, hit also by a rebound in crude oil prices.
MALAYSIA:
Shares of Top Glove, the world's largest listed rubber latex glovemaker, jumped more than 8 percent on expectations of higher demand for medical gloves if the flu spreads, dealers said.
Shares of Kossan Rubber and Supermax, both rubber glove makers, were also up.
"The spread of the swine flu would require more medical gloves and Top Glove, Supermax and Kossan will likely benefit from this additional demand," said a dealer with a local investment bank.
