All the major Asian indices are making a comeback. The slowdown in coronavirus contagion has restored confidence among investors. Japan and the US intervene to support the economy. Fears decline of a "price war" between oil producers.
Beijing (AsiaNews / Agencies) - Asian markets are recovering after yesterday's collapse. Near the closure, Shanghai and Shenzhen were up by 1.82% and 2.65% respectively. Hong Kong marked a + 1.86%. The losses had averaged 3-4%. Tokyo, which had experienced a loss of over 5%, also gained 0.85%.
According to analysts, the slowdown in coronavirus contagion in China and neighboring states (especially South Korea, among the most affected) has restored confidence among investors, who are now chasing business and can buy securities at minimal prices. The visit of Chinese President Xi Jinping to Wuhan, the epicenter of the epidemic, is viewed positively: the sign that perhaps the worst has passed in the country.
The recovery has also been helped by the choices made by Japanese Prime Minister Shinzo Abe and US President Donald Trump, who promised interventions to support their economies. Tokyo will soon inject new liquidity into the financial system; Washington is geared towards reducing labor taxes.
The drop in oil prices to around $ 31 a barrel, caused by the ongoing confrontation between OPEC and Russia on possible production cuts, had contributed to the thud of the markets. Brent hit 35 dollars a barrel today, the WTI is around 33 dollars. Markets are convinced that Riyadh (leader of the OPEC cartel) and Moscow will not arrive at a "price war" and will find an agreement, considering that below the $ 30 a barrel mark the sector becomes unprofitable.