Asian markets stabilise after China virus nerves

HONG KONG (AFP) - Asian markets halted their slide yesterday with investor nerves eased after a week of volatility prompted by the rapid spread of a viral illness in China.
The coronavirus infection has killed at least 26 people while the number of confirmed cases has leapt to 830, health officials said. 

Authorities have shut down public transport in 13 cities - together home to more than 40 million people around the epicentre of the outbreak in Wuhan.

“Markets are fearful the virus could spread, and even if it doesn’t the impact on China could be large,” National Australia Bank analyst Tapas Strickland said in a note.
But the World Health Organization has stopped short of declaring a global health emergency - a rare instrument used only for the worst outbreaks.

“The WHO has provided a hefty dose of market prescribed penicillin that has lowered investors’ fever for the time being,” said AxiCorp chief market strategist Stephen Innes. Hong Kong was down nearly four percent for the week but closed 0.2 percent higher after a half-day session ahead of the Chinese New Year holiday. 

Tokyo closed up 0.1 percent after sliding 1.2 percent since Monday, while Sydney finished the day 0.3 percent higher. Mainland bourses began their week-long break for the holiday, a day after the Shanghai exchange shed nearly three percent in its worst pre-Lunar New Year market fall on record. Fears remain that the holiday when hundreds of millions of people travel across China could catalyse a further spread of the virus and knock-on market headwinds.