Coronavirus spreads in Asia, Europe, Middle East fuelling market selloff

In Europe, Italy has become a front line in the global outbreak with 322 cases. Italians or people who had recently visited the country, have tested positive in Algeria, Austria, Croatia, Romania, Spain and Switzerland.

Two hotels, one in Austria and one in Spain's Canary islands, were also locked down after cases emerged linked to Italy. Spain also reported its first three cases on the mainland.

The WHO says the outbreak peaked in China around Feb. 2, after authorities isolated central Hubei province and imposed other extreme containment measures that have paralysed the world's second-biggest economy.

Growth in China looks set to fall further from a three-decade low of 6.1% last year after the disruption but authorities are now urging "low-risk" regions to get back to work.

Chinese stocks recouped some losses as new cases fell but the effects of the outbreak are reverberating in the region, with most major economies expected to either slow, halt or shrink this quarter, Reuters polls found.

Forecasts from economists collected by Reuters on Feb. 19-25 showed that Australia, South Korea, Taiwan, Singapore and Thailand are all expected to put in their worst performance in years in the quarter.

Hong Kong unveiled a record budget deficit, pledging cash handouts and tax breaks to soften the blow to its recession-hit economy from recent protests and the virus.