Asia report: Most markets higher as coronavirus concerns ease
Most markets in Asia bounced into the green on Wednesday, as investors continued to keep an eye on the coronavirus outbreak, particularly in China.
In Japan, the Nikkei 225 was up 0.89% at 23,400.70, as the yen weakened 0.51% against the dollar to last trade at JPY 110.43.
Of the major components on the benchmark index, automation specialist Fanuc was up 0.15%, Uniqlo owner Fast Retailing rose 1.85%, and technology conglomerate SoftBank Group was 1.56% firmer.
The broader Topix ended the session 0.37% higher, finishing its trading session at 1,671.86.
Fresh trade data out of Japan showed the country’s exports were down 2.6% year-on-year for January, which was still much better than the 6.9% decline expected by economists polled by Reuters.
Exports from the country had slumped 6.3% in December.
On the mainland, the Shanghai Composite closed down 0.32% at 2,975.40, and the smaller, technology-focussed Shenzhen Composite was 0.55% lower at 1,846.41.
Investors were keeping a close eye on China’s return to work, following the the government’s extension of the Lunar New Year holiday in a bid to keep a lid on the outbreak of the Covid-19 coronavirus.
According to state media on Tuesday, more than 80% of the 20,000 government-owned manufacturing subsidiaries had resumed production.
“A small decline in the number of coronavirus cases combined with a determination on behalf of the Chinese government to ward off the economic damage is seeing an uplift in market mood,” said London Capital Group analyst Jasper Lawler
“We aren’t putting too much stock in the official China figures, which appear to paint a picture rather than reflect reality.
“But if Beijing ups stimulus measures then those economic effects are real.”
South Korea’s Kospi eked out gains of 0.07% to finish at 2,210.34, while the Hang Seng Index in Hong Kong rose 0.46% to 27,655.81.
Both of the blue-chip technology stocks were higher in Seoul, with Samsung Electronics up 0.67% and SK Hynix ahead 1.47%.
Oil prices were higher at the end of the Asian day, with Brent crude last up 1.35% at $58.54 per barrel, and West Texas Intermediate adding 1.4% at $52.79.
In Australia, the S&P/ASX 200 was ahead 0.43%, ending its trading day at 7,144.60, with gold plays among the leading risers as the price of the precious metal rose.
Evolution Mining was up 5.13%, while Newcrest was ahead 3.25% in Sydney.
Casino operator Crown Resorts was off 0.34%, meanwhile, as it reported a fall in half-year profit following China’s restrictions on its citizens travelling overseas.
Chinese travellers make up a large proportion of high-rolling gamblers in the region.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.38% firmer at 11,981.03, with construction conglomerate Fletcher leading the market higher, adding 4.4%.
The company reported a fall in first-half profits to NZD 82m from NZD 89m, which it put down to the costs of its restructure in Australia, as it hiked its interim dividend to 11 New Zealand cents per share, from eight cents.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.01% at AUD 1.4950, and the Kiwi advancing 0.15% to NZD 1.5636.