Asia report: Markets follow Wall Street higher after IMF package

Markets in Asia finished higher on Thursday, as investors digested the news that the International Monetary Fund (IMF) was preparing a $50bn aid package to help alleviate the effects of the coronavirus outbreak.

In Japan, the Nikkei 225 was up 1,09% at 21,329.12, as the yen strengthened 0.66% against the dollar to last trade at JPY 106.82.

Of the major components on the benchmark index, automation specialist Fanuc was down 0.2%, while fashion firm Fast Retailing rose 1.66% and technology conglomerate SoftBank Group was 1.68% firmer.

The broader Topix index was 0.88% firmer by the end of trading in Tokyo, reaching 1,515.71.

On the mainland, the Shanghai Composite was 1.99% higher at 3,071.68, and the smaller, technology-heavy Shenzhen Composite was up 1.78% at 1,929.44.

South Korea’s Kospi rose 1.26% at 2,085.26, while the Hang Seng Index in Hong Kong added 3.08% to 26,767.87.

Both of the blue-chip technology stocks were higher in Seoul, with Samsung Electronics up 0.7% and chipmaker SK Hynix up 0.64%.

Sentiment was relatively positive in the region on Wednesday, following a smashing session on Wall Street overnight, in which the Dow Jones Industrial Average packed on more than 1,000 points.

The IMF also added to the mood, saying its $50bn aid package was available “immediately” to low-income countries and emerging markets.

Oil prices were mixed at the end of the Asian session, with Brent crude last down 0.33% at $50.96 per barrel, while West Texas Intermediate added 0.09% to $46.82.

In Australia, the S&P/ASX 200 was up 1.11% at 6,395.70, as biotherapeutics company CSL rocketed 3.51%.

Fresh trade data released during the day was above expectations in the sunburnt country, with the balance on goods and services coming in at AUD 5.21bn for January.

That was well beyond the AUD 4.8bn expected by analysts polled by Reuters.

At the same time, authorities in Canberra warned that the ongoing outbreak of Covid-19 would knock at least 0.5 percentage points from the current quarter’s growth, as Australia reported its second death from the coronavirus.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 moved up 1.95% to 11,640.89, led higher by subscription broadcaster Sky Network Television, which was 9.8% firmer.

Both of the down under dollars were weaker against the greenback, with the Aussie last 0.5% weaker at AUD 1.5167 and the Kiwi retreating 0.2% to NZD 1.5907.