(1888PressRelease)
April 29, 2009 - More countries have reported cases of the flu, and countries such as Australia and South Korea were testing for the virus. The World Health Organization raised its alert level to be a step closer to declaring the first flu pandemic in 40 years.
But so far the deaths have not spread beyond Mexico, where the outbreak began and 149 people were killed.
Companies such as drugmakers and producers of face masks got a boost on an expected increase in demand, while airlines extended losses on worries the swine flu will cause a sharp reduction in travel around the world.
Japan's Chugai Pharmaceutical, maker of influenza drug Tamiflu, rose 4.3 percent. Hong Kong's Cathay Pacific Airways dropped 2.3 percent.
Market players cut back on holdings of riskier higher-yielding currencies and commodities for a second day, taking profits on winning bets since the beginning of March that a global economic recovery was taking root.
"Active trade is limited as the market is trying to grasp how much swine flu could impact the global economy. We had finally begun to see a bottom for the global economy and that has been now ruined by pigs," said Stephen Yang, a Senior Analyst with Seedorf Luxman & Partners in Singapore.
The MSCI index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.9 percent, broadly in line with U.S. shares after the S&P 500 shed 1.1 percent on Monday.
The MSCI benchmark for Asia is still up 28 percent from a five-year low hit in early March.
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