Australia's stock market has been rocked by pandemic fears.

The ASX dropped by more than 3 per cent in minutes as the market opened on Friday, its fifth consecutive day of decline. ‘

Fears and economic slowdown caused by the COVID-19 outbreak have now wiped approximately $200 billion from the market and erased all gains made in 2020.

The scramble to scrambled to dump money increased after PM Scott Morrison announced an emergency plan has been activated in anticipation of the outbreak reaching a pandemic phase.

Mr Morrison said the plan would “contain the impact of this virus”.

“Together we will get through this,” he said.

Mr Morrison said “expert medical advice” prompted the government to take “steps necessary” to contain the looming pandemic.

Over $1.5 trillion has been wiped off the global economy this week, with investors pulling cash from volatile markets and pushing it into traditional “safe havens” like gold.

Investors are worried about the COVID-19 outbreak because trade is restricted when pandemics occur.

With $120 billion a year coming to Australia from iron ore exports to China alone, the local economy cannot afford to see ship captains stuck on docks, ports closed and truck delivery routes ceased.