- Asian equities fail to hold onto the previous day’s pullback amid fresh fears from South Korea.
- WHO raised concerns that coronavirus spread could keep investors on edge.
- Japanese PM shows actions to tame the deadly virus, the US President praises the team for handling the Chinese disease.
Despite receding coronavirus (COVID-19) numbers from China, Asian share markets aren’t happy as cases from South Korea continue to flash red signals. As of February 26, South Korea registered a total of 1,146 cases compared to less than 100 a week ago. This pushed the US and Japan to turn down the visitors to the Asian session.
While portraying the risk-off in Asia, MSCI’s index of Asia-pacific shares outside China declines by 0.80% whereas Japan’s NIKKEI follows the suit with -0.75% figures to 22,436 by the time of writing. Further, stocks in China fail to cheer the successive declines in the death toll due to the epidemic. However, doubts surrounding the cure still loom and keep the risk-tone under pressure. Additionally, South Korea’s KOSPI drops -1.03% to 2,081 and Hong Kong’s HANG SENG also equals the loss to 26,652 as Hong Kong unveiled stimulus to tame the deadly virus.
It’s worth mentioning that Singapore's STI couldn’t benefit from upbeat Industrial Production and so does India’s BSE SENSEX which loses 0.65% to 40,020 by press time even as the White House flashed green signals for the US-Indian trade deal.
On Tuesday, the US Centers for Disease Control (CDC) and Prevention triggered fears of coronavirus outbreak in the world’s largest economy. Following that, the US 10-year treasury yields and Wall Street registered additional losses. However, an official later turned down any such scope and helped trigger the pullback during the early Asian session.
The US 10-year treasury yields rose three basis points (bps) to 1.359% while the S&P 500 Futures register 0.48% gains to 3,148 by the press time.
Outside Asia, the latest spread of the coronavirus in Europe and the Middle East is also an area of concern. As a result, developments surrounding the same should be watched carefully for near-term direction.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.