Andy Maynard, a Hong Kong-based trader at China Renaissance, spoke about the drop in Asian markets yesterday.

He told the FT: “Yesterday’s pain is today’s gain.”

He added that “there is a sense … that in the medium-term there is a potential correction coming — albeit probably not as large as we’ve already seen”.

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5.56am update: US economy expected to start to rebound in second half of 2020

The US economy will experience a “significant, historic” contraction in the second quarter before it starts to rebound, and unemployment will remain elevated at the end of 2020, Dallas Federal Reserve President Robert Kaplan said on Monday.

Kaplan said he projects that gross domestic product will drop by an annualized rate of 35 percent to 40 percent in the second quarter and that it should start to recover in the second half of the year.

He said the economy may recover more quickly if consumers and businesses take precautions to limit the spread of the novel coronavirus.

“If people wear masks widely, if we have extensive testing and contact tracing, if businesses and us as individuals follow good procedure, we’re going to grow faster,” Kaplan said during a virtual discussion organized by the Money Marketeers of New York University.