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Asian Stocks Gain Ground as Sentiment Improves

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Most of the headline equity markets in the Asian and Pacific Rim were trading higher by Wednesday afternoon, Hong Kong time.

Trader sentiment was broadly improved over reports that the spread of new coronavirus cases has slowed.

The headline benchmark equity bourses in Hong Kong and mainland China were trading in the green by lunch time.

The Asian benchmark in Japan, the Nikkei 225, was up over half a percent. Overnight, the merger between Sprint and T Mobile was approved in the United States. Shares of Softbank, the majority shareholder in Sprint, jumped 12.28 percent on the news.

In Tokyo, the broader Topix index was down, bucking the trend, about 0.14 percent.

In South Korea, the Kospi composite index was up over 0.2 percent and elsewhere in the Asian and Pacific Rim, the Australian ASX 200 added half a percent.

Asian Traders Monitor the Corona Virus

According to health officials in China, the growth rate of the coronavirus, as far as new cases are concerned, has slowed and now at its lowest level since January 30. However international experts remain cautious over when the outbreak will hit its peak.

Chinese Refineries cut Fuel Production

Travel restrictions into and out of China have cut fuel usage. Thanks to the quarantine, the two largest refineries in China have said they will cut processing by 940,000 barrels per day.

Financial traders are very concerned about the fast spreading coronavirus.  This respiratory virus has shut down cities in China. It has infected tens of thousands around the world and killed over a thousand people. Most of these deaths are in China.

There is a Quiet Economic Calendar on Tuesday

Looking at the economic calendar for Wednesday, things are pretty light with no high impact events scheduled. The United Kingdom will release their CB leading index. The United States will publish their monthly Federal balance data.

Also on the U.S calendar are weekly crude oil inventory data. The European Union will release monthly Eurozone industrial production numbers.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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