Meanwhile, in another boost to sentiment, Russia and Saudi Arabia were “very, very close” to an oil deal to reduce production, Russia’s sovereign wealth fund chief told CNBC. Oil prices have plunged since the two major oil players set off a price war right at a time the virus had already dampened demand.

“More and more people have turned optimistic, as they believe [coronavirus] cases appear to be peaking in Europe and the US, and that OPEC and Russia are very close to a deal of a production halt,” said Alan Li, portfolio manager at Atta Capital.

“Those trends may further boost market sentiment. And people are looking at those sectors which will benefit from the world stepping back to normal,” Li said.

Globally, deaths due to the respiratory illness are closing in on 70,000, and about half of the world’s population is on lockdown, upending travel, business and employment. The International Monetary Fund says the global economy is in a recession, and China’s central bank warned of a possible Great Depression, although it called the possibility low.

The leader of Japan, the world’s third-largest economy, declared a month-long state of emergency through much of the country. Prime Minister Shinzo Abe also announced a US$998 billion package to help families and businesses.

Japan’s move comes as the hotspots of New York, Spain and Italy showed a slowdown in daily deaths over the weekend, boosting sentiment as pharmaceutical companies around the world race to come up with effective treatments and a vaccine.

Japan’s economy was already troubled before the coronavirus outbreak, which has infected at least 3,000 residents there and killed 70.

The city’s recovery from the economic fallout of the coronavirus pandemic may not improve in the next six months, said financial secretary Paul Chan Mo-po, adding that the government will offer “comprehensive” aid to protect businesses and jobs across all sectors as the outbreak’s impact hits the economy. 

China markets were closed due to the Ching Ming Festival.

Singapore and Hong Kong are tightening restrictions to try to curb a new wave of infections. Singapore, where 195 new cases were reported over the weekend, will shut non-essential businesses on Tuesday, followed by schools. Hong Kong reportedly is looking at stronger measures as well, after restricting travel into the city, closing bars and imposing seating distances in restaurants.

In the US, the world’s largest economy, the coming two weeks will be especially grim in terms of deaths, with the US surgeon general likening the period to Pearl Harbour and the September 11 terror attacks. But New York saw its daily deaths, hospitalisation and intubations decline, though New York Gov. Andrew Cuomo said it was too early to know whether a turning point has been reached.

“I see light at the end of the tunnel,” President Donald Trump said at a news conference. “ … We have to open our country up … I hope it is going to come back quickly.”

For investors, the coronavirus continues to drive equity markets, with huge volatility in prices at times. All of the world’s major markets except in China are in bear territory.

Elsewhere in markets, Singapore’s Straits Times Index rose 3.2 per cent.

Bucking the trend was New Zealand’s S&P/NZX50, which slid 1.7 per cent.

“Hundreds of people are passing away each day from the pandemic, but less so than previous days, giving markets hope that the lockdown measures are finally starting to prove effective. Like the rest of the world, financial markets are searching for any slivers of hope,” said Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA.