A passenger wearing a protective face mask, amid concerns about the COVID-19 outbreak, walks in Linate Airport in Milan, Italy on Sunday. Photo: AFP

A swathe of northern Italy was sealed off as authorities struggled to contain the spread and impact of the deadly coronavirus on Monday, with infections soaring past 7,000, overtaking South Korea as the country with the highest number of cases after China.

An area home to a quarter of Italy's population was effectively shut off - including Milan and Venice.

Already 110,000 people in 99 countries and regions have been infected with the virus, and many more have seen daily life disrupted by school closures, shortages of basic household goods and travel restrictions.

Italy's lockdown will see police setting up controls at train stations, stopping all cars on main roads in and out, flights from Milan suspended and penalties of three months in jail or a 206 euro ($233) fine for flouting the rules.

British Prime Minister Boris Johnson was on Monday preparing to chair an emergency meeting at which more stringent measures to tackle the outbreak will be considered.

Germany on Monday reported 210 new confirmed cases of the coronavirus, the Robert Koch Institute said, totaling 1,112 confirmed cases in Europe's biggest economy. France had 1,126 confirmed coronavirus cases and 19 deaths as of Sunday evening.

Iran has had 237 deaths from coronavirus and 7,161 infections, Iranian Health Ministry said on Monday.

There are mounting concerns that the US could be the next COVID-19 hotspot. At least 21 people have died in the US and the number of cases soared past 500 Sunday, affecting 30 of the country's 50 states. 

The surge in US cases came as Trump's administration appeared divided on what to do with a coronavirus-hit cruise ship stuck off the California coast.

The Grand Princess, which has 21 confirmed novel coronavirus infections among 3,500 people on board, is due to dock in Oakland on Monday. 

US President Donald Trump has argued they should stay on the ship. Trump, who has been accused of peddling misinformation on the outbreak, blamed the media for trying to make his government "look bad."

"We have a perfectly coordinated and fine tuned plan at the White House for our attack on CoronaVirus," he tweeted.

Market researchers at the ANZ Bank said Trump's response was fueling global financial jitters, along with a price war between oil producers that saw energy markets collapse on Monday. 

A report from the UN Conference on Trade, Investment and Development warned that the viral spread could hit foreign direct investments worldwide by as much as 15 percent as international business reels.

South Korea, which has one of the largest coronavirus tallies outside China, reported its smallest daily rise in cases for two weeks. A total of 248 cases were confirmed on Sunday, the Korea Centers for Disease Control and Prevention  said. The increase took its total to 7,382.