China accuses U.S. of whipping up panic over virus as stocks tumble

The death toll in China from the newly identified virus, which emerged in Wuhan, capital of the central province of Hubei, rose to 361 as of Sunday, up 57 from the previous day, the National Health Commission said.

The World Health Organization (WHO) last week declared the flu-like virus a global emergency and it has since spread to 23 other countries and regions, with the first death outside of China reported on Sunday, that of a 44-year-old Chinese man who died in the Philippines after travelling from Wuhan.

Wuhan and some other cities remain in virtual lockdown with travel severely restricted, and China is facing increasing international isolation.

China accused the United States of spreading fear by pulling its nationals out and restricting travel instead of offering significant aid. Relations between the two sides had just begun to recover after a long and bruising trade war.

Washington has “unceasingly manufactured and spread panic”, Chinese Foreign Ministry spokeswoman Hua Chunying told reporters, noting that the WHO had advised against trade and travel curbs.

“It is precisely developed countries like the United States with strong epidemic prevention capabilities and facilities that have taken the lead in imposing excessive restrictions contrary to WHO recommendations,” she ad

‘NO REASON’ FOR TRAVEL CURBS

WHO Director-General Tedros Adhanom Ghebreyesus, speaking in Geneva, again said travel bans were unnecessary.

“There is no reason for measures that unnecessarily interfere with international travel and trade,” he told the WHO’s Executive Board. “We call on all countries to implement decisions that are evidence-based and consistent.”

China’s delegate said the international community needed to treat the new virus outbreak objectively, fairly and not “deliberately create panic” among the general public.

China would continue to take a “responsible attitude” towards its people’s health, rigorously implement control measures and work to halt the spread of the virus, he said.

Chinese stocks closed down almost 8%, the yuan currency had its worst day since August, and Shanghai-traded commodities from oil to copper hit their maximum downward limits. A gauge of global stocks was near seven-week lows.

The wipeout in China came even as the central bank made its biggest cash input into financial markets since 2004 - with an injection of 1.2 trillion yuan ($174 billion) of liquidity into the markets via reverse repo operations - and despite apparent regulatory moves to curb selling.

Investors had been bracing for volatility when onshore trade in stocks, bonds, yuan and commodities resumed, following a steep global selldown on fears about the impact of the virus on the world’s second-biggest economy.

Beijing also said it would help firms that produce vital goods resume work as soon as possible, state broadcaster CCTV reported.

But while stock markets reopened, most provinces have extended the holiday to try to contain the virus, with workers in Hubei not scheduled to return until after Feb. 13.

The number of new confirmed infections in China rose by 2,829, bringing the total to 17,205.

The WHO reported at least 151 confirmed cases have been reported in 23 other countries and regions, including the United States, Japan, Thailand, Hong Kong and Britain.