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Markets in Asia gain as China return on economic stability

Syed Umarullah HussainiWeb Editor

14th Apr, 2020. 09:42 am
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Markets in Asia

Markets in Asia gained on Tuesday after China largely brought disease under control within its borders since the Coronavirus outbreak first emerged in Wuhan.

As most of the people in the country return to work, and travel restrictions eased across industrial hub Wuhan, Tuesday’s data beat expectations about Markets in Asia.

Exports fell 6.6 percent and imports dropped 0.9 percent in March on a yearly basis, according to Customs figures

The falls that were well below the 10 percent or more forecast by a Bloomberg survey of economists.

But Julian Evans-Pritchard of Capital Economics warned “the worst is still to come” for China’s export businesses, with more economic headwinds likely in the months ahead as the world battles the coronavirus outbreak.

Investors will now await the release of quarterly GDP figures on Friday, with forecasters predicting a 6.2 percent contraction.

Regional bourses had already moved into positive territory before the results announced.

Tokyo was up 1.9 percent, Shanghai climbed 0.7 percent and Hong Kong returned from a four day break to rise 0.6 percent in morning trade.

Sydney was up 1.0 percent despite the forecast doubling of Australia’s unemployment rate to 10 percent in the second quarter.

The Australian dollar rallied from last month’s 18-year lows with a slowdown in new coronavirus infections and signs of returning industrial activity in China.

Investors shook off a negative lead from Wall Street overnight ahead of earnings reports from major US banks.

Nearly 600,000 people tested positive for the disease and more than 23,500 have died across the US.

Oil markets higher after United States President Donald Trump claimed producers considering output cuts of 20 million barrels per day.

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