Asian stock markets rebound despite fears of Chinese virus

The Nikkei gained 0.70% and the Topix gained 0.53%. Hong Kong rebounded 1.3%, while Shenzhen regained 0.72% and Shanghai 0.28%.

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The major Asian stock markets resumed on Wednesday, despite lingering concerns over the epidemic caused in the region by the new virus originating in China, while the death toll is increasing day by day.

In Tokyo, star index Nikkei gained 0.70% to 24,031.35 points, even though it had started the session down slightly. The broad Topix index gained 0.53% to 1744.13 points.

Investors decided to buy back stocks due to the weakening of the yen against the dollar and also to profit from good deals.

This has put fears linked to the rapid spread of the new coronavirus originating in China, which has infected some 440 people and already killed nine people in the country, according to a latest provisional assessment, in the background.

Health officials in many countries are on high alert as the large crossover on the road ahead of the Chinese New Year this weekend raises fears of more infections.

The World Health Organization (WHO) is scheduled to meet in Geneva on Wednesday to decide whether to declare a “public health emergency of international concern”.

A first case has also been identified in the United States. He is a man who arrived in Seattle (northwest) from Wuhan, the home of the new virus, the United States Centers for Disease Prevention and Control (CDC) announced on Tuesday.

The Hong Kong Stock Exchange, which had unscrewed on Tuesday, rebounded 1.3% on Wednesday to 28,341.04 points, while the Shenzhen composite index regained 0.72% at 1,819.61 points and that of Shanghai 0.28% at 3060.75 points.

On the side of values

MITSUBISHI MOTORS FACING DIESELGATE

The title of automaker Mitsubishi Motors, the third member of the Renault-Nissan alliance, dropped 4.18% to 435 yen. The group confirmed that it had been targeted by searches in Germany on Tuesday in the vast investigation into fake diesel engines, which has already splashed several German and international manufacturers.

“There is the suspicion” that diesel engines installed in “cars of the Mitsubishi brand” are “equipped with software” making them appear less polluting during tests than in traffic, explained the parquet of Frankfurt (west of Germany).

Japanese equipment maker Denso, whose premises were also raided on Tuesday in Germany, sold 1.64% to 4,921 yen.

MASSIVE RECALL

Still in the automotive sector, Toyota lost 0.39% to 7,823 yen and Honda stagnated (-0.09% to 3,030 yen). The two manufacturers have separately announced recalls of more than 6 million of their vehicles in the United States and elsewhere in the Americas for safety concerns of a different nature.

On the currency and oil side

After climbing Tuesday due to its safe haven status, the yen was almost stable on Wednesday against the dollar, which was worth 109.97 yen around 09.10 GMT against 109.94 yen the day before after the closing of the Tokyo Stock Exchange, point of benchmark of Japanese investors.

The Japanese currency appreciated very slightly against the euro, which was trading for 121.86 yen around 09.10 GMT against 121.99 yen the day before.

The euro was slightly down against the dollar, at the rate of one euro for 1.1080 dollars around 09.10 GMT against 1.1091 dollars Tuesday at 20.30 GMT.

Oil prices, which had already retreated on Tuesday due to declining supply concerns in Libya and Iraq, continued to decline in Asia on Wednesday. Around 9:00 GMT the price of a barrel of American crude WTI thus fell by 0.75% to 57.94 dollars and that of a barrel of Brent from the North Sea yielded 0.71% to 64.13 dollars.

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