Asia Pacific markets mostly traded higher on Wednesday, building on gains from the previous session, after stocks sold off recently due to worries over the new coronavirus outbreaks.
In Japan, the Nikkei 225 index spiked 234.97 points, or 1%, Wednesday, to 23,084.59
The yen, considered a safe-haven asset in times of market uncertainties, changed hands at 109.42 per U.S. dollar, weakening from levels below 108.80 earlier in the week.
In Hong Kong, the Hang Seng Index gained 110.76 points, or 0.4%, to 26,786.74
South Korea’s Hyundai Motor said on Tuesday it decided to temporarily suspend production assembly lines from operating at all of its plants in the country due to disruptions in the supply of parts from China. Hyundai shares closed flat.
Stocks in Australia progressed, even as the heavily weighted financial sub-index gave up earlier gains to finish fractionally lower. Major banking stocks in the country closed mixed, with Commonwealth Bank shares dropping 1.2%.
CHINA
The CSI 300 added 42.89 points, or 1.1%, to 3,828.53.
China’s central bank lowered interest rates on reverse repurchase agreements — a tool used by central banks to add money to the money supply — on Monday to ensure adequate liquidity supply in the system as the country tackles to contain the virus outbreak. The People’s
Bank of China (PBOC) reduced the seven-day reverse repo rate by 10 basis points from 2.50% to 2.40%, and the 14-day rate was slashed from 2.65% to 2.55%.
PBOC injected 1.7 trillion yuan (approx. $242 billion u.S.) into money markets through reverse repurchase operations on Monday and Tuesday.
On Wednesday, the central bank said it decided not to conduct open market operations for the day because there was “adequate liquidity in the current banking system, which is sufficient to meet the market demand.”
Still, some economists think the Chinese central bank’s efforts may not be enough to offset the economic impact of the coronavirus outbreak that has already killed 490 people in the country.
The fast-spreading infection is already starting to have an impact on China: travel numbers have declined due to restrictions and quarantines, businesses are feeling the impact from falling demand, and large swathes of the country remain shut, including many factories.
In other markets
In Taiwan, the Taiex moved forward 17.7 points, or 0.2%, to 11,573.62
In Korea, the Kospi index inched up 7.73 points, or 0.4%, to 2,165.63
In Singapore, the Straits Times Index hiked 43.56 points, or 1.4%, to 3,200.13
In New Zealand, the NZX 50 revived 92.6 points, or 0.8%, to 11,604.09
In Australia, the ASX 200 jumped 27.35 points, or 0.4%, to 6,976.05
