TOKYO- Asian shares and US stock futures edged cautiously higher, as investors tried to shake off worries about the coronavirus epidemic after a slight decline in the number of new cases.
MSCI’s broadest index of Asia-Pacific shares outside Japan eked out a minor 0.03 percent gain but spent much of the morning session bouncing between gains and losses.
Chinese shares erased early declines to trade 0.15 percent higher. Australian shares were up 0.02 percent, while Japan’s Nikkei stock index rose 0.5 percent.
The euro languished at a three-year low versus the dollar as disappointing data from Germany, Europe’s largest economy, has stoked fears that the euro zone is more vulnerable to external shocks than previously thought.
The Treasury curve remained inverted on Wednesday as yields on three-month bills traded above yields on 10-year notes in a sign that some investors remain cautious about the outlook.
China, the world’s second-largest economy, is still struggling to get its manufacturing sector back online after imposing severe travel restrictions to contain a virus that emerged in the central Chinese province of Hubei late last year.
Many investors view Chinese data on the virus, dubbed SARS-CoV-2, with a great deal of scepticism, but there are hopes that officials will roll out more stimulus to support the world’s second-largest economy.
“Part of the thinking that is supporting markets is the actions that China takes to support its economy,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
“Any investor concern around impact on demand globally from the virus will be offset by expectations that global central banks will ride to the rescue.”
US stock futures rose 0.18 percent in Asia on Wednesday. The S&P 500 fell 0.29 percent on Tuesday after Apple Inc said it would miss sales targets because the virus in China is pressuring its supply chain.
Mainland China had 1,749 new confirmed cases of coronavirus infections on Tuesday, the country’s National Health Commission said on Wednesday, down from 1,886 cases a day earlier and the lowest since Jan. 29. — Reuters
