The coronavirus pandemic became the problem number one for the stock markets not only in Asia but across the globe. Several months ago, it was hard to imagine that, coronavirus would become the main challenge to the global economy. However, central banks in cooperation with governments are ready to do whatever it takes to avoid the worst-case scenario. Currently, the number of confirmed cases surpassed 950,000. As stated above, stock markets are struggling to adjust to the new reality.
Importantly, concerns over the economic impact of the global coronavirus pandemic, continue to weigh on market sentiment. It is not a secret that markets hate uncertainty and in this situation, it is hard to say how long it would take to stabilize the situation.
Markets on April 2
Stocks in the Asia Pacific region were mixed on Thursday. Hopefully, mainland Chinese stocks saw gains on the day. Interestingly, stocks recovered from earlier losses and this is good news for the markets.
The Shanghai Composite added 1.69% to about 2,780.64. In the meantime, the Shenzhen composite gained 2.258% to around 1,697.55.
Moreover, Hong Kong’s Hang Seng index advanced 0.69% as of its final hour of trading. Hang Seng index strengthened its position even though shares of HSBC were down 2.5%
South Korea’s Kospi index added 2.34 to end its trading day at 1.724.86.
Unfortunately, Australia’s S&P/ASX 200 decreased 1.98% to close at 5.154.30 as the financial subindex fell 4.21%. The financial subindex and consequently the S&P/ASX 200 fell as shares of major banks sold off.
In Japan, the Nikkei 225 dropped 3.7% end its trading day at 17,818.72. Another index Topix fell 1.57% to close at 1.329.87. On Thursday, the Nikkei 225 decreased as shares of index heavyweight Fast Retailing plunged 2.41%.
The first quarter of 2020, was tough, to say the least, and it will take to overcome at least some of the issues. Hopefully, it was a good day for stock markets in several countries.