Markets in Asia reflected on the news that China would halve tariffs on hundreds of U.S. goods. This move helped to improve the situation. The stocks are struggling as the virus created additional pressure on the markets.
The virus killed more than 500 people in China, and thousands are infected, according to China’s National Health Commission.
Chinese authorities tried to limit the spread of this virus by imposing travel restrictions. Furthermore, they extended the Lunar New Year holiday. In spite of all the measures, coronavirus reached all regions of China. In the modern world, it is tough to stop this virus especially in the case of the world’s most populated country.
Markets on Thursday
As mentioned above, markets benefited from the positive news connected with U.S.-China trade relations. China would halve tariffs on hundreds of U.S. imports starting from February 14.
Such decisions will help to stabilize the situation as the protracted trade war between the largest economies in the world created many problems. This adjustment would apply to about $75 billion worth of imports.
Mainland Chinese stocks were the biggest gainers of the day. For example, Shenzhen composite rose 2.895% to end its trading day at approximately 1,727.24. Meanwhile, the Shenzhen component added 2.87% to close at 10,601.34.
The Shanghai composite also strengthened its position. Its index gained 1.72% to close at about 2,866.51.
In Japan, stocks also had a positive day. The Nikkei 225 added 2.38% to 23,873.59. The Topix index gained 2.07% to 1,736.98.
South Korea, Kospi index rose 2.88% to close at 2,227.94.
Hong Kong’s Hang Seng index gained 2.35% as of its final hour of trading.
In Australia, S&P/ASX 200 ended its trading day 1.05% higher at 7,049.20.
Coronavirus outbreak in China created questions regarding its influence on the stock markets. It will take time to access the negative effects of this virus on the economy.