Chinese stocks logged their steepest declines in months on Thursday after China barred travel from the city at the epicenter of a worsening viral outbreak, as investors grappled with the potential economic fallout of the disease.

The Shanghai Composite Index sank 2.8% in its biggest single-day drop since May 2019. The Shenzhen Composite Index slumped 3.5%, while Hong Kong’s Hang Seng Index fell 1.9%.

The…

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