Asia report: Most markets manage gains after Monday slump
Most markets in Asia finished in the green on Tuesday, recovering somewhat from Monday’s heavy losses as investors waited with bated breath for news on stimulus amid the coronavirus outbreak.
In Japan, the Nikkei 225 was up 0.85% at 19,867.12, as the yen came down from its recent highs, last weakening 2.42% against the dollar to trade at JPY 104.84.
Of the major components on the benchmark index, automation specialist Fanuc was down 0.46% and Uniqlo owner Fast Retailing lost 0.7%, while technology conglomerate SoftBank Group rose 2.43%.
The broader Topix index ended its session 1.28% firmer in Tokyo, closing at 1,406.68.
On the mainland, the Shanghai Composite was 1.82% firmer at 2,996.76, and the smaller, technology-heavy Shenzhen Composite added 2.42% to 1,887.34.
South Korea’s Kospi was ahead 0.42% at 1,962.93, while the Hang Seng Index in Hong Kong was up 1.41% at 25,392.51.
Both of the blue-chip technology stocks were higher in Seoul, with Samsung Electronics up 0.74% and SK Hynix rising 2.53%.
Investor focus was once again on both the ongoing global coronavirus outbreak and the oil price crisis, which saw West Texas Intermediate slide to around $30 per barrel before markets opened on Monday.
It came about after OPEC failed to reach a deal with its allies on production cuts amid the current low-demand environment, itself triggered by the Covid-19 outbreak, which led to Saudi Arabia slashing its oil prices for April.
On the coronavirus front, G7 leaders are expected to reveal stimulus packages in the coming days, with Japan’s finance minister Taro Aso promising a second round of measures on Tuesday.
Stateside, US president Donald Trump said he would be meeting with Republicans from both the House of Representatives and the Senate later in the global day to look at “possible tax relief”.
Oil prices were higher at the end of the Asian day, with Brent crude last up 7.96% at $37.33 per barrel, and West Texas Intermediate ahead 0.66% at $34.08.
“A fall as great as that seen on Monday is always going to attract a few vultures, swooping in to pick at the market’s bloody carcass - remember, the global indices are now heavily discounted from the all-time highs struck just a month ago,” said Spreadex analyst Connor Campbell.
“Then there was Donald Trump, attempting to gee-up investors by suggesting he was preparing a ‘major’ economic relief package in the US, one that would potentially include a payroll tax cut and provisions to protect hourly workers.
“This likely gave further justification [to] those looking to enter the market at a potential bargain price.”
Campbell also pointed to the fact that Italy is now in complete lockdown, with internal travel restrictions stretching far beyond the initially quarantined northern part of the country.
"A serious reaction to a serious situation, which is good. But boy will it be costly," said Campbell.
Australia’s S&P/ASX 200 advanced 3.11% by end-of-play in Sydney, finishing at 5,939.60, having earlier slipped into bear market territory, defined as being more than 20% off its 52 week peak.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was the region’s odd one out, paring back some of its early losses but still finishing down 1.75% at 10,897.47.
Medical device maker Fisher & Paykel Healthcare, which some local analysts had considered a potential beneficiary of the coronavirus outbreak, was down 4.5% by the end of trading in Wellington.
Tourism Holdings, meanwhile, gained 2% after being battered in recent sessions, as investors mulled the potential impact of the outbreak on New Zealand’s lucrative tourism sector.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.41% at AUD 1.5250, and the Kiwi retreating 0.32% to NZD 1.5832.