Chinese shares sink, bonds soar as oil plunge, virus fears roil markets

SHANGHAI, March 9 (Reuters) – Chinese shares sank on Monday as fears over the economic impact of the spreading coronavirus epidemic and a sudden plunge in oil prices battered global financial markets.

The benchmark Shanghai Composite Index was down 1.85% in early trade and blue chips lost 2.14%. A sub-index of the CSI tracking energy shares fell 3.12%.

In Hong Kong, the Hang Seng index was 3.75% lower. The drop pushed the Hang Seng into a correction, down more than 10% from a Feb. 17 high.

The sell-off in stocks was mirrored by a rush into Chinese treasury bonds, pushing futures sharply higher. The most-traded contract for Chinese 10-year treasury bonds, for June delivery , opened 0.67% higher, and was last up 0.46% at 101.925. (Reporting by Andrew Galbraith; Editing by Christopher Cushing)

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