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Chinese stocks surge beyond 2%, Asia shares mixed due to Coronavirus impact

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Chinese stocks surge beyond 2%, Asia shares mixed due to Coronavirus impact

Chinese stocks rose more than 2%. However, due to the Coronavirus impact, the rest of the Asia shares remained a mixed bag.

Asia Pacific markets were mixed on Monday as investors were still skeptical due to the potential economic fallout caused by coronavirus that’s infected more than 70,000 people, and the death toll has risen over 1,700.

Shares in mainland China ascended. The Shanghai composite surged 2.28% to 2,983.62, the Shenzhen added 3.18% to 1,835.96 and the Shenzhen component gained 2.98% to 11,241.50.

Hong Kong’s Hang Seng index went up 0.58% in late afternoon trade.

Meanwhile, Japanese shares tumbled, with the benchmark Nikkei 225 falling 0.69% to 23,523.24 and the Topix index dropped by 0.89% to 1,687.77.

Vishnu Varathan, head of economics and strategy for Asia at Mizuho Bank, wrote in a note, “Admittedly, while lots of fluids is a recommendation for flu, money market liquidity infusions alone will not address China’s woes from the coronavirus.”

“Nonetheless, ensuring ease of cash flow is a necessary condition to ensure otherwise viable businesses do not go belly up due to a seizure in liquidity,” Varathan added.

(Reference: CNBC)

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