The Xi factor draws bargain hunters back to China’s stocks, pushing Asian markets to rally as new coronavirus cases taper off
- Benchmark indexes advanced in 14 of the 19 stock markets in the Asia-Pacific region as of 4:30pm in Hong Kong
- The number of new coronavirus cases eased in Asia, with mainland China reporting 19 new cases overnight, to the extent that even Chinese President Xi Jinping thought it safe to make his first visit to Wuhan, in a gesture that bolstered confidence
Benchmark indexes rose in 14 of 19 stock markets in the Asia-Pacific region as of 4:30pm, according to Bloomberg data, including in Japan, South Korea, Taiwan, Hong Kong, Shanghai and Shenzhen.
Traders took comfort in signs that the coronavirus outbreak appears to be easing in Asia – even as new cases and deaths have soared in North America and Europe – leading them to believe that the dampening effect on the financial markets and economies would only be temporary. The Chinese president Xi Jinping even visited Wuhan, his first to the Hubei provincial capital ever since the infectious disease was first reported in January, in a gesture that boosted confidence.
“Some investors … believe the virus outbreak will only affect the market for one to three months,” said Everbright Sun Hung Kai’s wealth management strategist Kenny Wen, adding that Hong Kong’s 4.2 per cent plunge on Monday had been oversold. “They plan to bottom fish, [now that] the Hang Seng Index dropped 1,700 points in just two days.”
Hong Kong’s benchmark Hang Seng Index closed 1.4 per cent higher, its first day of gains in three, while the H-shares index advanced 1.7 per cent. Of the 50 constituents on the Hang Seng, 42 stocks advanced.