Major markets in Asia attempted to bounce back on Monday after sharp losses last week, even though Chinese manufacturing data released over the weekend and on Monday came in much worse than expected.
The Nikkei 225 rebuilt 201.12 points, or 1%, to 21,344.08.
Shares of Sharp were up 2.2% following reports from Japanese media late last week that the firm is set to start making face masks amid a
shortage caused by the coronavirus outbreak.
The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, traded at 108.31 per u.s. dollar after seeing an earlier high of 106.97.
In Hong Kong, the Hang Seng Index regained 161.75 points, or 0.6%, to 26,291.68.
The Australian dollar changed hands at $0.653 after dropping from levels above $0.6555 last week.
CHINA
The CSI 300 reattached 129.62 points, or 3.3%, to 4,069.67.
The moves upward on the mainland came despite a private survey released Monday that showed factory activity in China slumping to a record low in February. The Markit/Caixin manufacturing Purchasing Managers’ Index (PMI) dropped to 40.3, much lower than expectations of a reading of 45.7. The figure had come in at 51.1 in January. The 50-point level in PMI readings separates growth from contraction.
The survey release came on the back of data released by the National Bureau of Statistics on Saturday, which showed the official PMI falling to 35.7 in February ?— the lowest level on record, according to Reuters — as compared to a reading of 50.0 in January. Analysts had expected the official February PMI to come in at 46.0.
The moves regionally on Monday came after markets saw a global sell-off in recent days as investor concerns rose over the rapid spread of the coronavirus outside of China, where it was first reported. The sharp moves downward left multiple major Asia-Pacific markets in correction territory by Friday’s market close, with their counterparts stateside and in Europe also seeing steep losses.
At least 85,000 cases of the coronavirus have been confirmed around the world so far, along with more than 2,900 virus-related deaths. Australia, Thailand and the U.S. reported over the weekend their first coronavirus-related deaths. On Sunday, World Health Organization Director-General Tedros Adhanom Ghebreyesus said global markets "should calm down and try to see the reality."
In other markets
In Korea, the Kospi index improved 15.5 points, or 0.8%, to 2,002.51
In Taiwan, the Taiex returned from a long weekend to lose 121.71 points, or 1.1%, to 11,170.46
In Singapore, the Straits Times Index dropped 3.36 points, or 0.1%, to 3,007.72
In New Zealand, the NZX 50 dumped 157.73 points, or 1.4%, to 11,103.43
In Australia, the ASX 200 skidded 49.69 points, or 0.8%, to 6,391.52
