On Thursday, mainland Chinese stocks strengthened their positions. Moreover, Chinese stocks recovered from earlier losses and without a doubt, it was a positive day for the stock markets.
Let’s have a look at the Chinese stock indexes. The Shanghai Composite added 1.69% to about 2,780.64. At the same time, the Shenzhen composite rose 2.258% to around 1,697.55.
South Korea’s Kospi index gained 2.34 to end its trading day at 1.724.86.
However, Australia’s S&P/ASX 200 fell 1.98% to close at 5.154.30 as the financial subindex dropped 4.21%. Unfortunately, the financial subindex and consequently the S&P/ASX 200 fell as shares of major banks sold off.
As can be seen from the title, it was a turbulent day for Japanese stocks. The Nikkei 225 dropped 3.7% end its trading day at 17,818.72. Topix index decreased 1.57% to close at 1.329.87. On Thursday, the Nikkei 225 fell as shares of index heavyweight Fast Retailing dropped 2.41%.
Stocks, economy and coronavirus
The first quarter of 2020, was tough for the economy of China as well as to other countries. Several months ago, it was hard to imagine that, coronavirus would become the main issue to the global economy.
Authorities in China imposed restrictions as they tried to contain the virus. Nevertheless, coronavirus reached all regions of China. Moreover, at the moment this virus spread to the vast majority of countries.
Hopefully, China was able to stabilize the situation in Wuhan, which was the city from which this virus originated from several months ago.
The current situation is far from being ideal. It is not a secret that stocks hate uncertainty. Moreover, concerns over the economic impact of the global coronavirus pandemic, continue to weigh on market sentiment.
Importantly, central banks in cooperation with governments are working round the clock to avoid the worst-case scenario. Nevertheless, people should follow the instructions otherwise it will be tough to solve problems.