Asian markets improve a day after the coronavirus shocked Chinese stocks
Stocks in Asia mostly improved Tuesday, one day after Chinese markets experienced their worst session in years.
The Shanghai Composite ended up 1.3%. It was the second day Chinese markets had to react to the worsening coronavirus since closing for the Lunar New Year holiday more than a week ago. Monday was the index’s worst day since August 2015’s “Black Monday,” when global markets were rattled by fears of an economic slowdown in China.
The Shenzhen Component Index closed 3.2% higher. Monday marked that index’s biggest single-day percentage drop since 2007.
Monday’s losses wiped out a combined $445 billion in the two indexes’ stock value.
Hong Kong’s Hang Seng Index rose 1.2% Tuesday, while South Korea’s Kospi rose 1.8%. Japan’s Nikkei 225 edged up 0.5%.
The coronavirus is still looming large on other businesses, though. Shares of Macao casino operators dropped in Hong Kong after the Macao government said it would suspend operations of gambling and related industries for half a month. Macao officials told CNN that it’s not yet been decided when that suspension will start. There are currently 10 known cases of coronavirus in Macao.
Galaxy Entertainment and Sands China, both components of the Hang Seng Index, declined 2.3% and 2%, respectively. Wynn Macau and MGM China, which trade in Hong Kong but are not components of that index, fell 1.7% and 2.2%, respectively.
China’s currency, meanwhile, strengthened compared to Monday, rising back above the important 7 yuan per dollar mark. The onshore yuan was last trading at about 6.99 yuan to one US dollar. The currency made similar gains in the offshore market, where it trades more freely.
Oil futures recovered a little during Asian trading hours Tuesday after earlier crashing into another bear market. US oil rose 1.3%, while Brent crude, the global benchmark, moved 0.8% higher.
— CNN’s Chermaine Lee and Sandi Sidhu contributed to this report.
