|Day's range||27,264.78 - 27,484.53|
|52-week range||24,899.93 - 30,280.12|
Japan and Singapore are on the brink of recession and South Korea on Friday said its exports to China slumped in the first 20 days of February as the outbreak upends global supply chains.
Shares were mixed Thursday in Asia after Wall Street recovered to record highs, but worries persist about damage to the regional economy from the new virus that began in China. Overnight, U.S. stocks shook off their latest virus-induced losses, breaching new record highs. Technology stocks led the rally, as Apple rallied to recover most of its loss from the prior day.
Apple Inc. said it will not meet its revenue guidance for the March quarter as the coronavirus outbreak slowed production and weakened demand in China. Europe’s largest bank, HSBC, reported a 33% fall in 2019 pre-tax profit to $13.35 billion after it took a goodwill impairment of $7.3 billion.
On Friday, Singapore Prime Minister Lee Hsien Loong said the coronavirus’ economic impact on the island nation’s economy has already exceeded that of SARS in 2003, according to a report by local publication The Straits Times.
The Chinese government on Thursday sacked its top two officials in Hubei, the province at the centre of the coronavirus epidemic, just hours after announcing a sharp rise in new infections and deaths from the disease. Hubei reported 14,840 new cases — a tenfold surge over the number reported on Wednesday, while new fatalities more than doubled to 242. The sudden increase stemmed from changes in the methodology for how officials are counting coronavirus cases.
Global equity markets are down on Thursday as investors trim positions in risky assets and move money into the safety of the Japanese Yen.
While Chinese health officials said the situation was World under control, the Health Organization (WHO) warned the epidemic posed a global threat potentially worse than terrorism.
US and European stock indices closed at record highs, while their Hong Kong and Chinese counterparts built on a rebound, as investors calmed their nerves over the coronavirus outbreak that has swept across Asia. On Wall Street, the S&P 500 finished 0.2 per cent on Tuesday, a new peak. The benchmark had been up as much as 0.7 per cent earlier today.
Uncertainty about work resuming at factories in China is setting in, with provinces or cities posting different dates for an extended shutdown as the coronavirus outbreak continues to spread.
China’s factory-gate prices snapped six months of year-on-year declines in January, although prolonged business closures from the coronavirus outbreak mean positive momentum is unlikely to persist.
Some analysts and economists are downgrading China’s GDP growth forecast for 2020 as the coronavirus outbreak hits the world’s second largest economy. Chinese government economist said that the country’s first-quarter economic growth may drop to 5% or even lower.
Retaliatory duties on some U.S. goods will be cut from 10% to 5%, and from 5% to 2.5% on others, according to a statement from China’s Ministry of Finance.
Stocks were supported by liquidity moves from the People’s Bank of China (PBOC) earlier in the week and reports of a massive upcoming stimulus package from China’s government.
European markets are expected to open higher on Tuesday as sentiment improves and investors brush aside economic fears over the coronavirus outbreak.
On Monday, the major Asian indexes sank to their lowest in seven weeks on fears the corona virus epidemic would hit demand in China.
China's currency and stock markets steadied in choppy trade on Tuesday, after anxiety over the spreading coronavirus the previous session hit the yuan and erased some $400 billion (£307.9 billion) in market value from Shanghai's benchmark index. Hong Kong's Hang Seng index , which has shed 9% in a little over two weeks as the coronavirus spread across China and the world from Hubei province, climbed 1% in the morning. The yuan recovered some lost ground, firming 0.2% to 7.0049 per dollar .
I expect Chinese equities to “play catch-up” with the rest of the global indexes. My guess is for a 6-10% lower opening on Monday, February 3.
China’s factory activity cooled slightly in January, although officials and analysts warned the drop does not account for the coronavirus outbreak, which is set to test an economy already growing more slowly.