Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL MARKETS-Stocks inch higher as new coronavirus cases fall

Published 12/02/2020, 01:52
Updated 12/02/2020, 01:54
© Reuters.  GLOBAL MARKETS-Stocks inch higher as new coronavirus cases fall
US500
-
AXJO
-
JP225
-
ESZ24
-
CL
-
IXIC
-
US10YT=X
-
MIAPJ0000PUS
-

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* Equities cautiously higher in Asia

* Investors trying to measure spread of coronavirus

* Oil prices extend rebound from 13-month lows

By Stanley White

TOKYO, Feb 12 (Reuters) - Asian shares and Wall Street

futures nudged higher on Wednesday amid hopes the worst of the

coronavirus in China may have passed, although prevailing

uncertainty about the outbreak has kept investors wary.

MSCI's broadest index of Asia-Pacific shares outside Japan

.MIAPJ0000PUS was up 0.1%. Australian shares .AXJO were up

0.27%, while Japan's Nikkei stock index .N225 rose 0.45%.

Oil futures, which have been in a downtrend since the start

of the year, rose in Asia from 13-month lows due to budding

optimism about the virus and hopes that output cuts by major

producers will support prices.

The yuan held gains in offshore trade and safe-havens such

as Treasuries, the yen and the Swiss franc were marginally

weaker in a sign of slowly improving sentiment.

The global mood brightened after China's senior medical

adviser said on Tuesday the number of new coronavirus cases was

falling in some provinces and forecast the epidemic would peak

this month. The number of new cases in Hubei, the province at the

epicentre of the outbreak, was 1,068 as of Tuesday, down from a

peak of over 3,000 new cases on Feb. 4, and the lowest number of

new infections since Jan. 31.

Investors will likely need to see more evidence that the

virus, which emerged in the central Chinese city of Wuhan late

last year and has spread to 24 other countries and territories,

is indeed receding before they take on more risk.

Concerns that the virus will slow factory activity and

consumer spending in the world's second-largest economy have

roiled global stocks and commodities, and many of these markets

are still trying to regain their footing.

"Evidence suggests the positive mood will continue, and we

see some coordination in markets with oil rallying, base metals

up and Treasuries coming under pressure," said Michael McCarthy,

chief market strategist at CMC Markets in Sydney.

"It does appear there is increasing comfort that the virus

won't impact growth in a significant way, but I am not ready to

buy risk assets yet."

U.S. stock futures ESc1 rose 0.12% in Asia on Wednesday.

The S&P 500 .SPX and the tech-heavy Nasdaq .IXIC inched to

their second consecutive closing high on Tuesday.

Benchmark 10-year Treasury notes US10YT=RR fell further in

Asia, pushing yields up to 1.6057%.

Treasury prices declined on Tuesday after U.S. Federal

Reserve Chair Jerome Powell said the U.S. economy is resilient.

Powell also said he is closely monitoring the coronavirus in

China, because it could lead to disruptions that affect the

global economy. Chinese firms and factories are struggling to get back to

work after the extended Lunar New Year holiday. Some companies

say they need loans and are laying off workers as supply chains

for global firms from car manufacturers to smartphone makers

ruptured. China's foremost medical adviser on the outbreak, Zhong

Nanshan, told Reuters numbers of new cases were falling in some

provinces and forecast the epidemic would peak this month,

although investors remained sceptical. In the commodities market, U.S. crude futures CLc1 ticked

up 0.32% to $50.10 a barrel on hopes that Chinese demand for oil

will pick up once the flu-like virus is contained.

Saudi Arabia wants global oil producers to agree a quick

supply cut in response to the coronavirus, sources familiar with

the kingdom's thinking have told Reuters, which is another

supportive factor for crude futures. In the offshore market, the yuan CNH=D3 was little changed

at 6.9682 per dollar but close to a two-week high.

The yen JPY=EBS traded at 109.82 versus the greenback, on

course for its third day of decline, while the Swiss franc

CHF=EBS held steady at 0.9755 against the dollar.

(Editing by Sam Holmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.