- Asian equities are mildly positive after marking losses the previous day.
- Expectations of further liquidity infusion by the key economies tease the second straight week of gains.
Shares in Asia are marking a recovery from the previous day’s losses while heading into the European session on Friday. The equities are likely taking clues from the latest headlines suggesting Asian diplomats’ readiness to infuse further liquidity to tame the coronavirus impact.
Ever since returning from the Lunar New Year Holidays, China has infused $348 billion Chinese yuan into the markets. Recently, South Korean diplomats including Bank of Korea (BOK), Governor Lee Ju-yeol and Finance Minister Hong Nam-ki flashed signals to favor further stimulus to safeguard against the deadly virus. It should also be noted that BOJ officials also crossed wires during the early Asian session while favoring further stimulus measures.
The fears of coronavirus shot yesterday after Hubei, the epicenter, registered a sudden spurt in numbers of cases by 14,000+ while adopting a new method for diagnosis. However, the toll scaled back afterward to being shy of 5,000 by the end of February 13.
As a result, MSCI’s index of Asia-Pacific shares (outside Japan) mark 0.33% gains whereas Japan’s NIKKEI fails to portray the risk-on as declining to 23,650, -0.76%, by the press time. Stocks in India bear the burden of mixed comments from the global rating agencies whereas those of China pulls back of receding pessimism.
Moving on, South Korea’s KOSPI is +0.43% to 2,242 whereas Hong Kong’s HANG SENG is +0.38% to 27,836 by the time of writing.
Markets will now concentrate on the coronavirus headlines, coupled with the US and EU data points for fresh impulse.
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