· Asian shares steadied on Friday in holiday-thinned trade for the Lunar New Year, despite fears that a new coronavirus from China could spread rapidly as millions of people travel over the week-long break.
Most markets had stabilized overnight, as investors took some solace from the World Health Organisation (WHO) labeling the outbreak an emergency for China, where 25 people have died and more than 800 have been infected, but not, as yet, for the rest of the world.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.12%, while Japan’s Nikkei gained 0.13% and Australian stocks added a marginal 0.04%.
Trade in Asia was already slowing down for the Lunar New Year holiday, with financial markets in mainland China, Taiwan and South Korea closed on Friday.
· Japanese shares ended slightly higher on Friday in a see-saw session as worries about the spread of a new virus in China played tug-of-war with bets that the health crisis will boost drug makers' earnings.
The Nikkei index ended 0.13% higher at 23,827.18 points, but was down 0.9% for the week.
The markets started on a positive note as information technology and industrial equipment stocks rose following better-than-expected sales and profit forecasts from U.S. chipmaker Intel Corp. But investors turned cautious after China said the death count from the coronavirus had risen to 25, with 830 confirmed cases as of Jan. 23. Chinese authorities placed two cities on lockdown to contain the virus.
In the afternoon session stocks started rising again due to gains in the healthcare sector.
Investors are worried the virus will continue to spread as millions of Chinese travel during the week-long Lunar New Year holiday starting on Friday.
· European stocks opened higher on Friday, looking to break a four-day losing streak after the World Health Organization (WHO) said the deadly Chinese coronavirus was not a “global emergency” yet.
The pan-European Stoxx 600 added 0.7% in early trade, basic resources rebounding 1.5% to lead gains as almost all sectors and major bourses entered positive territory.
Reference: Reuters, CNBC
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