Shares in mainland China rose on Monday as investors monitored the ongoing virus outbreak’s impact on Chinese manufacturers. Factories in China were set to return to work on Monday, but many are expected to remain shut for longer.
In Japan, the Nikkei 225 index sank 142 points, or 0.6%, Monday, to 23,685.98. The Japanese yen traded at 109.77 per U.S. dollar after seeing an earlier high of 109.55.
In Hong Kong, the Hang Seng Index dropped 162.93 points, or 0.6%, to 27,241.34. Hotpot stocks led declines among restaurant operators amid coronavirus fears. Shares of Haidilao dropped 4.06% while Xiabuxiabu Catering Management plunged 6.7%.
Shares of Taiwan-listed Hon Hai Precision Industry, better known as Foxconn and the world’s largest iPhone assembler, were watched amid concerns its factories in China may not open on Monday as previously planned. That could potentially hit Apple and some analysts have already reduced their iPhone shipment predictions earlier this month.
Australian markets lost ground. The Australian dollar changed hands at $0.6695 after touching an earlier low of $0.6656.
CHINA
The CSI 300 gained 16.14 points, or 0.4%, to 3,916.01.
The moves came following the release of Chinese inflation data for January. China’s producer price index gained 0.1% in January, media reported Monday, citing official data. Consumer prices also rose 5.4% year-on-year, higher than a 4.9% increase expected by analysts
Developments on the ongoing coronavirus outbreak continue to be watched, with the death toll from the disease overtaking that of SARS over the weekend.
Factories in China were scheduled to reopen on Monday after an extended holiday because of efforts to control the new coronavirus, though many are expected to remain shut for longer.
That could mean further disruptions to supply chains for many companies. Quarantines and other measures put in place to contain the outbreak could continue to disrupt electronics manufacturing well into the 2020 holiday season, even if factories quickly return to full production, manufacturing experts said.
On Monday, Reuters reported citing a person with direct knowledge that Foxconn received approval to resume production at a plant in the Chinese city of Zhengzhou. The source told the media that Foxconn executives were “trying very hard” to negotiate with authorities to continue production in other parts of the country.
Foxconn did not outright confirm that its plans to restart operations have been delayed, Shares of Hon Hai Precision Industry slipped 1.1% on Monday.
In other markets
In Taiwan, the Taiex lost 38.74 points, or 0.3%, to 11,574.07
In Korea, the Kospi index fell 10.08 points, or 0.5%, to 2,201.07
In Singapore, the Straits Times Index dwindled 18.33 points, or 0.6%, to 3,163.15
In New Zealand, the NZX 50 let go of 58.29points, or 0.5%, to 11,702.59
In Australia, the ASX 200 docked 10.05 points, or 0.1%, to 7,012.53
