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Malaysia's move to probe AirAsia rattles investors

Shares dive, analysts cut stock view amid earnings woes from coronavirus

An AirAsia Airbus A320-200 plane at Kuala Lumpur International Airport: AirAsia Group shares fell as much as 11% in intra-day Kuala Lumpur trading and ended 10.5% lower 1.28 ringgit apiece.   © Reuters

KUALA LUMPUR (Nikkei Markets) -- Malaysian authorities' decision to probe AirAsia following alleged graft detailed in Airbus SE's record-$4 billion bribery settlement rattled investors Monday who hammered the share of the budget carrier to four-year low.

Analysts said the scandal, which sparked knee-jerk selldown and could potentially mar AirAsia's reputation, may continue to weigh on the shares, while travel restrictions due to the Wuhan coronavirus outbreak hurt passenger traffic growth, posing downside risks to earnings.

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