Forex Marketz Daily Forex News – Fully Markets Update
Asian equity markets are recovering as Mainland stock markets in China are inching higher. However, Asian and Pacific Rim sentiment remains weak as traders are still digesting the ongoing economic impact of the coronavirus that has killed over 400 in China, so far.
In Japan, the Nikkei 225 was up 0.35 percent by lunchtime. In Tokyo, the broader Topix index added over half a percent.
In South Korea, the Kospi composite index soared better than 1.7 percent.
Elsewhere in the Asian region, the Australian S&P ASX 200 added 0.22 percent.
On Monday the markets in China tanked over seven percent. Today, by the afternoon, the Shanghai composite was up 0.21 percent. The Shenzhen composite was down 0.46 percent but the Shenzhen component added 1.74 percent.
In Hong Kong, the Hang Seng index was up 1.16 percent.
Asian Traders monitor Coronavirus News and Digest ISM PMI Data
In the news, out of Hong Kong, Hong Kong’s Hospital Authority confirmed the first death from the coronavirus. Traders are watching developments very closely, especially the potential for economic damage throughout the region and global.
China will allow U.S. health experts as part of the efforts by the World Health Organization (WHO) to help stop the spread of the coronavirus. This fast spreading viral respiratory infection has infected thousands in China and worldwide. Mainly, in China, the virus has killed hundreds.
The death toll in China is now at 425 according to the country’s National Health Commission.
Looking at U.S. economic data, the ISM manufacturing purchasing managers’ index (PMI) rebounded in January and above the contraction level at fifty (50). This is giving traders hope that the prolonged slump in U.S. manufacturing is finally turning around.
As inflation is stable in the world’s largest economy and employment is solid, the Federal Reserve is likely to stick with their neutral wait and see approach with interest rates and monetary policy. This is according to commentary from Atlanta Federal Reserve Bank President Raphael Bostic on Monday.
