HONG KONG — The outbreak of a deadly disease in China has cast a pall over growth prospects for the world’s second largest economy, raising fears about the global outlook if the mysterious coronavirus spreads or worsens.

Financial markets across Asia fell on Thursday, led by sharp drop in stocks in China, as investors pondered the potential impact of the coronavirus. The extent of its severity has become more clear over the past two days, as Chinese officials reported a surge in cases and a jump in the number of deaths to at least 26.

On Thursday, officials extended limits on movement in and out of Wuhan, the epicenter of the outbreak, to two nearby cities that millions more call home

The uncertainty has put a palpable damper on Chinese life just before the Lunar New Year holiday — typically a time of travel, shopping and gift-giving — which begins on Friday. Train stations and airports were subdued as travelers changed plans for the weeklong holiday, and seven of the most anticipated film openings of the holiday season were postponed.