Coronavirus News Asia

Markets lifted as China, Japan signal support


(ATF) Hong Kong: Financial markets have bounced back as the death rate has fallen in many countries and several countries have started to reopen their shuttered economies.

Japan’s Nikkei 225 added 1.05% after Prime Minister Shinzo Abe said the government was ready to take further steps to ease the economic pain from the coronavirus pandemic. Abe talked about taking “bold and timely action” but did not specify the size of the spending.

Meanwhile, Australia’s S&P ASX 200 added 1.3% and Hong Kong’s Hang Seng index rose 1.53%. The MSCI Asia Pacific index also climbed 0.73%.

China’s CSI300 benchmark ended flat despite the PBoC, the central bank’s Q1 monetary report published over the weekend saying more stimulus measures are in the pipeline.

“We expect continued monetary policy support to facilitate fiscal easing measures financed by larger government bond issuance in the coming quarter, in terms of an additional 20bps MLF rate cut, 50-75bps broad-based RRR cut (or equivalent), and continued implementation of PBoC re-lending,” said Morgan Stanley economists in a note.

“As it is, data showed a strong credit impulse with broad credit (TSF) growth reaching 12.2% YoY in April (versus 11.7% in March and 11% in December 2019), and we expect it to pick up by another 80bps to 13% YoY for the rest of this year.”

‘Second wave’ in the US, Korea

Still, investors are concerned about the second wave of infections in the United States and South Korea, where the government shut down all bars and clubs linked to a growing outbreak. The South Korean benchmark the Kospi index fell 0.54%.



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