Asian markets gained in early trading Tuesday, as stocks in mainland China turned positive after plunging Monday.
Chinese indexes sank more than 7% on Monday, as traders played catch-up to fears related to the coronavirus outbreak after markets were closed all last week.
But the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -1.09% and the smaller-cap Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 -2.13% were both in the green Tuesday. China’s central bank on Sunday announced measures to cushion the blow expected from the stock selloff, and further stimulus is expected to offset the predicted economic impact of the outbreak.
“Given the extent of the shutdowns in China as well as the rapid rise in the virus that is likely to continue through March or April, a significant hit to China and regional growth is very likely,” JPMorgan economist Joseph Lupton said, according to Reuters . “We would assume that in addition to bridging any funding stresses, fiscal policies will need to be ramped up to support growth once the contagion gets under control.”
Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.86% rose more than 1%, despite the first reported coronavirus death in the city. Hong Kong shut most of its border crossings with mainland China on Tuesday in an effort to stop the spread of the disease. China said Tuesday that more than 20,000 people have been infected, with 425 dead.
Elsewhere in Asia, Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK -0.77% inched up, while South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.12% made strong gains. Stocks fell in Malaysia /zigman2/quotes/210598052/delayed MY:FBMKLCI -0.24% , but gained in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 +0.03% , Singapore /zigman2/quotes/210597985/delayed SG:STI -0.33% and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX -2.00% . Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.30% rose 0.3% as the Reserve Bank of Australia left its benchmark interest rate steady Tuesday.
Among individual stocks, Panasonic /zigman2/quotes/201785256/delayed JP:6752 -0.18% surged in Tokyo trading after the company reported its first quarterly profit in its battery business with Tesla /zigman2/quotes/203558040/composite TSLA +2.97% — which saw its own stock skyrocket 20% on Monday. Screen Holdings /zigman2/quotes/200599327/delayed JP:7735 +0.28% also gained, while financial holding company Nomura /zigman2/quotes/206251373/delayed JP:8604 -0.85% fell. Sunny Optical /zigman2/quotes/206687505/delayed HK:2382 -1.68% , AAC /zigman2/quotes/201441510/delayed HK:2018 +12.67% and Tencent /zigman2/quotes/204605823/delayed HK:700 -1.13% rose in Hong Kong. Samsung /zigman2/quotes/209800866/delayed KR:005930 -0.48% and chip maker SK Hynix /zigman2/quotes/206420319/delayed KR:000660 -1.79% gained in South Korea, and Apple /zigman2/quotes/202934861/composite AAPL -1.50% manufacturer Foxconn /zigman2/quotes/204111604/delayed TW:2354 +0.14% rose in Taiwan. ANZ Banking /zigman2/quotes/205482049/delayed AU:ANZ +0.45% and Virgin Australia advanced in Australia.
Stocks on Wall Street rose Monday, as the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.11% gained 143.78 points, or 0.5%, to end at 28,399.80, while the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.11% climbed 23.40 points, or 0.7%, to close at 3,248.92. The Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -0.48% advanced 122.47 points to 9,273.40, a gain of 1.3%.
After oil prices settled at a more than one-year low, the price of a barrel of West Texas Intermediate crude for March delivery gained 0.8% Tuesday to $50.47. April Brent crude , the international benchmark, rose 0.6% to $54.75 a barrel after closing Monday at a 13-month low.
The U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.2289% was about flat against the Japanese yen, at 108.70.