* FTSE 100 down 2.3%, FTSE 250 drops 2.1%
* Leisure and travel marks worst day in 3-1/2 yrs
* Asia-focused financial stocks fall 3.5%-5%
(Updates to closing prices)
By Muvija M
Jan 27 (Reuters) - London's FTSE 100 suffered its biggest
one-day fall in nearly four months as the coronavirus spread
globally with death tolls more than tripling from last week,
spooking investors about the potential financial hit to travel
and China-exposed companies.
The FTSE 100 index .FTSE , which had recovered on Friday
after the World Health Organisation issued a measured assessment
of the virus, stumbled 2.3%. The midcaps .FTMC slid 2.1%,
their steepest one-day decline in more than a year.
All but three stocks ended in negative territory on the main
bourse.
News that China's death toll from the coronavirus discovered
at the end of last year has risen to 81 dragged an index of
leisure and airline stocks .FTNMX5750 down 2.6% to its worst
day in more than three and a half years.
Roughly 6% has been wiped off the index since last week.
The sector is exposed to a slowdown in the travel market
because of the outbreak, with some standout individual losers
including British Airways owner IAG ICAG.L , which dropped
5.4%, and China-exposed luxury brand Burberry BRBY.L , down
4.6%.
Asia-focused financials HSBC HSBA.L , Prudential PRU.L
and Standard Chartered STAN.L skidded 3.5%-5% as businesses
shut shops and the Chinese government lengthened the week-long
Lunar New Year holiday by three days to try to contain the
outbreak.
Chinese state television reported that 2,835 cases of the
virus had been recorded, with countries including the United
States and Singapore having confirmed the spread of the virus.
"This has the potential to really rattle markets. And with
stock markets having been at or very near all-time highs before
all this broke, this is a perfect selling opportunity,"
Markets.com analyst Neil Wilson wrote.
"If politics is hard to grasp for most buysiders then
virology is impossible – that is enough reason to see de-risking
to happen; although I would still anticipate dips to be bought."
Sustained falls in travel-related bluechip stocks and
sectors exposed to China, including miners and oil majors, over
the last few trading sessions have left the main index with a 2%
loss so far this year.
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