TOKYO- Asian stocks steadied as Chinese stocks nudged higher on hopes of additional stimulus to lessen the economic impact of a coronavirus outbreak, but risks remain as the illness continues to spread and the death toll neared 500.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.36 percent.
Shares in China rose 0.5 percent while stocks in Hong Kong climbed 0.42 percent in early trading.
The onshore yuan was little changed versus the dollar, highlighting the cautious mood as investors monitor the impact of the virus.
The safe-haven yen and Swiss franc nursed losses versus the dollar. Oil prices bounced in Asia on hopes for more output cuts from OPEC and its allies but sentiment remained weak on worries about a long-term dent in demand for energy and other commodities.
China and other countries have imposed travel restrictions to try to contain a new virus that emerged in the central Chinese city of Wuhan late last year, slamming the breaks on manufacturing and tourism in the world’s second-largest economy.
Many investors argue that any slowdown will be temporary and that Chinese policy steps are reason to remain optimistic about the growth outlook, but so far public health officials have not found a way to stop the spread of the virus both inside and outside of China.
“We’re going to have a strong day in Asia, but whether this is the reversal of a downtrend remains to be seen,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
“Oil investors remain pessimistic about demand disruptions, but equity investors, especially overseas, are discounting the impact of the virus.” — Reuters
