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Hong Kong stocks closed lower on Wednesday as fears grew over the rapidly spreading coronavirus outbreak outside China, though losses narrowed after the Asian financial hub rolled out stimulus to prop up its economy.

Asia reported hundreds of new coronavirus cases, including the first US soldier to be infected, as the United States warned of an inevitable pandemic, and as outbreaks in Italy and Iran spread to more countries.

The benchmark Hang Seng index fell as much as 1.54% in early trade following Wall Street's sharp losses on growing fears of a global pandemic. The index later recovered some ground as investors cheered Hong Kong's latest stimulus, finishing the day down 0.73%.

Copyright Reuters, 2020

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