GLOBAL MARKETS-Stocks steady as caution on China virus continues; euro hits 7-week low after ECB

Published 24/01/2020, 02:19
Updated 24/01/2020, 02:28
© Reuters.  GLOBAL MARKETS-Stocks steady as caution on China virus continues; euro hits 7-week low after ECB

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

* Too early to declare China virus a global health emergency

* China, other Asian markets entering Lunar New Year holiday

* ECB leaves policy unchanged, euro hits 7-week low

By Tomo Uetake

TOKYO, Jan 24 (Reuters) - Stocks made a barely positive

start in early Asian trade on Friday after the world's health

body called it a little too early to declare a coronavirus

outbreak a global emergency.

But worries over rapid spread of the deadly virus kept

investors on guard as millions of Chinese travel during the

Lunar New Year holiday period.

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

.MIAPJ0000PUS rose a marginal 0.1%, while Japan's Nikkei

.N225 stood flat and Australian stocks .AXJO added 0.4%.

Trade in Asia is already slowing down for the Lunar New Year

holiday, with financial markets in China, Taiwan and South Korea

closed on Friday.

Key indices on Wall Street bounced from lows after the World

Health Organisation (WHO) said the latest coronavirus did not

yet constitute a global public health emergency. The Nasdaq Composite .IXIC rose 0.2% to a record closing

high, while the S&P 500 .SPX added 0.1% and the Dow Jones

Industrial Average .DJI eased 0.1%.

The WHO called a new coronavirus that has killed 18 people

in China and infected around 650 globally "an emergency in

China" on Thursday, but stopped short of declaring the epidemic

of international concern. "Investors are worried that the outbreak of coronavirus will

dampen consumption in China when the Chinese economy has been

already cooling down," said Yasuo Sakuma, chief investment

officer at Libra Investments.

In the currency market, the concerns about the virus

supported the yen.

The Japanese currency traded at 109.53 yen per dollar

JPY= , having risen to a two-week high of 109.26 on Thursday.

The euro EUR= fell to a seven-week low versus the dollar

of $1.1036 overnight after the European Central Bank left its

policy rates unchanged but President Christine Lagarde struck a

slightly dovish tone than some had expected.

Coronavirus fears continued to weigh on commodity prices.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were

up a marginal 0.05% at $55.61 a barrel, after hitting $54.77 in

the previous session, the lowest level since Nov. 20.

WHO says 'bit too early' to declare coronavirus a global

emergency is an emergency in China' says WHO, as virus death toll

rises to 18 Lagarde launches policy overhaul that will leave no stone

unturned bond yields plummet on cautious Lagarde tone, virus fears

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