Stock markets in Asia and elsewhere are vulnerable to various factors, as even one small accident can affect the stocks. The world has become a global village. Thus, investors are careful when it comes to investing as they would like to avoid any unnecessary risks. Coronavirus outbreak continues to dominate the headlines.
In this situation, investors are cautious as authorities in some regions of China decided to extend shutdowns for another couple of weeks. Moreover, there is a serious risk that Chinese GDP growth in the first quarter of 2020 would decline due to the coronavirus outbreak.
Stocks and health issues
Despite the coronavirus outbreak, stocks in the Asia Pacific had a good day.
In Hong Kong, the Hang Seng index achieved the best result among major markets in the region as its index rose 1.26% to close at 27,583.88. The shares of index heavyweight Tencent soared 2.1%. In the meantime, shares of automobile firm Geely added 5.69%. Geely announced that it plans to strengthen ties with Volvo.
Mainland Chinese stocks also saw gains on Tuesday. The Shanghai Composite rose 0.39% to around 2,901.67. The Shenzhen component added 0.37% to 10,768.63. Additionally, the Shenzhen composite rose marginally to approximately 1,758.02.
South Korea’s Kospi index gained 1% to close at 2,223.12. Shares of LG Chem rose 6.85%.
In Australia, the S&P/ASX 200 index finished its trading day 0.61% higher at 7,055.30, as almost all sectors gained. Shares of medical device firm Cochlear dropped 3.39% as the company reduced its outlook for the fiscal year 2020.
Cochlear altered its outlook due to the outbreak’s impact in the Greater China region. This region is one of the main markets for the company.
Investors are monitoring the situation to learn more about the economic impact of the coronavirus outbreak. It will take to analyze the situation to determine the overall impact on the global economy.