On Tuesday, stocks in the Asia Pacific increased despite problems connected with coronavirus. Investors are monitoring the situation to learn more about the economic impact of the coronavirus outbreak. More than 1,000 died from the outbreak and thousands are undergoing treatment.
In Hong Kong, the Hang Seng index achieved the best result among major markets regionally as its index rose 1.26% to close at 27,583.88. The shares of index heavyweight Tencent jumped 2.1%. Meanwhile, shares of automobile firm Geely added 5.69%. Geely announced that it plans to strengthen ties with Volvo.
Moreover, mainland Chinese stocks also saw gains on the day. The Shanghai Composite rose 0.39% to around 2,901.67. Another Chinese stock the Shenzhen component added 0.37% to 10,768.63. Furthermore, 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 it’s trading day 0.61% higher at 7,055.30 as almost all sectors gained.
It is worth mentioning that shares of medical device firm Cochlear dropped 3.39% as the company reduced its outlook for the fiscal year 2020. Cochlear had to change its outlook due to the outbreak’s impact in the Greater China region. This region is one of the main markets for the company.
Stocks and the influence of coronavirus
Investors are careful 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.
Moreover, 17% of world GDP comes from China. Also, the world’s second-largest economy plays a very important role when it reaches the global economy. As a result, the ongoing situation may cause severe problems for countries around the world.
This virus could affect the U.S. economy, and according to economist GDP growth may fall to 1.2% in the first quarter of 2020.
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