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 SHCOMP, +0.21% and the smaller-cap Shenzhen Composite 399106, +0.47% 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 HSI, +1.16% 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 NIK, +0.43% inched up, while South Korea’s Kospi 180721, +1.94% made strong gains. Stocks fell in Malaysia FBMKLCI, +1.24% , but gained in Taiwan Y9999, +1.93% , Singapore STI, +1.21% and Indonesia JAKIDX, +0.74% . Australia’s S&P/ASX 200 XJO, +0.30% rose 0.3% as the Reserve Bank of Australia left its benchmark interest rate steady Tuesday.
Among individual stocks, Panasonic 6752, +10.13% surged in Tokyo trading after the company reported its first quarterly profit in its battery business with Tesla TSLA, +19.89% — which saw its own stock skyrocket 20% on Monday. Screen Holdings 7735, +4.87% also gained, while financial holding company Nomura 8604, -2.31% fell. Sunny Optical 2382, +4.60% , AAC 2018, +2.28% and Tencent 700, +2.37% rose in Hong Kong. Samsung 005930, +2.97% and chip maker SK Hynix 000660, +2.32% gained in South Korea, and Apple AAPL, -0.27% manufacturer Foxconn 2354, +2.19% rose in Taiwan. ANZ Banking ANZ, +1.68% and Virgin Australia VAH, +3.57% advanced in Australia.
Stocks on Wall Street rose Monday, as the Dow Jones Industrial Average DJIA, +0.51% gained 143.78 points, or 0.5%, to end at 28,399.80, while the S&P 500 index SPX, +0.73% climbed 23.40 points, or 0.7%, to close at 3,248.92. The Nasdaq Composite Index COMP, +1.34% 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 CLH20, +0.86% gained 0.8% Tuesday to $50.47. April Brent crude BRNJ20, +0.57% , the international benchmark, rose 0.6% to $54.75 a barrel after closing Monday at a 13-month low.
The U.S. dollar USDJPY, +0.06% was about flat against the Japanese yen, at 108.70.