Asia report: Most markets fall after weekend of miserable Covid numbers

Most markets in Asia finished in the red on Monday, as the Covid-19 coronavirus outbreak continued to spread globally, although stocks in Australasia did manage to close positive.

In Japan, the Nikkei 225 was down 1.57% at 19,084.97, as the yen weakened 0.06% against the dollar to last trade at JPY 108.

Of the major components on the benchmark index, automation specialist Fanuc was down 1.61%, fashion firm Fast Retailing was off 2.45%, and technology conglomerate SoftBank Group was 4.99% lower.

Fujifilm was ahead 5.98%, meanwhile, after the country’s prime minister Shinzo Abe said the government was starting a trial with an anti-flu drug developed by the company as a potential treatment for Covid-19.

The broader Topix index was off 1.64% at 1,435.54 by the end of trading in Tokyo

On the mainland, the Shanghai Composite was 0.9% weaker at 2,747.21, and the smaller, technology-heavy Shenzhen Composite was off 2.11% at 1,657.55.

South Korea’s Kospi slipped 0.04% to close at 1,717.12, while the Hang Seng Index in Hong Kong was down 1.32% at 23,175.11.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 0.2%, while chipmaker SK Hynix eked out gains of 0.48%.

Coronavirus-related volatility remained the theme of the Asian session, as the latest data from John Hopkins University suggested there were now more than 700,000 confirmed cases worldwide, and at least 33,000 fatalities.

Stocks have seen sharp movements in both directions in recent weeks, as investors make sense of both the sudden pause the virus has put on the global economy, and the large sums of money governments are pumping into it in a bid to keep markets afloat.

“The raft of global stimulus measures continued on Monday, with the People's Bank of China cutting the reverse repo rate by 20 basis points, [the] Monetary Authority of Singapore lowering the midpoint of the currency band and Australia preparing to commit to $80 billion of spending over the next six months which includes wages subsidies,” the Oanda analyst Craig Erlam.

“As we've seen already though, these measures aren't having the same impact in the market as they have in the past. While they may soften the blow of any downturn, they stand no chance of preventing it altogether and a global recession is coming.

“The hope though is that these measures will ensure it is as brief as possible and maybe even turbo charge the recovery.”

Oil prices fell sharply by the end of the Asian session, with Brent crude last down 9.15% at $22.84 per barrel, and West Texas Intermediate off 5.65% at $20.36.

In Australia, the S&P/ASX 200 surged 7% to end its trading day at 5,181.40, with the big four banks leading gains in Sydney.

Australia and New Zealand Banking Group was up 8.47%, Commonwealth Bank of Australia added 10.91%, National Australia Bank rose 7.87%, and Westpac Banking Corporation was 8.53% firmer.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 managed gains of 1.09% to 9,661.19, led higher by the country’s major exports as the New Zealand dollar weakened.

Medical devices manufacturer Fisher & Paykel Healthcare was up 6.6%, and specialist dairy exporter A2 Milk added 2.8%.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.6% at AUD 1.6323, and the Kiwi retreating 0.52% to NZD 1.6657.