INSUBCONTINENT EXCLUSIVE:
TOKYO: Asian stocks edged up on Thursday, a day after US S-P 500 hit a record peak following encouraging economic data, while investors keep
a wary eye on the impact of the coronavirus outbreak.
MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.39 per cent
while Japan's Nikkei rose 1.63 per cent.
On Wednesday, the S-P 500 gained 1.13 per cent to a record close of 3,334.69 while the Nasdaq
Composite added 0.43 per cent to 9,508.68, also a record high.
The ADP National Employment Report showed private payrolls jumped 291,000
jobs in January, the most since May 2015, while a separate report showed US services sector activity picked up last month
Both indicators suggest the economy could continue to grow moderately this year even as consumer spending slows.
Traders also cited
unconfirmed reports of a possible vaccine breakthrough for the coronavirus as a trigger for Wednesday's stock rally, although they also
said such a catalyst was also likely to be an excuse for short-covering.
The World Health Organization played down media reports on
Wednesday of "breakthrough" drugs being discovered to treat people infected with the new coronavirus.
Another 73 people on the Chinese
mainland died on Wednesday from the virus, the highest daily increase so far, bringing the total death toll to 563, the country's health
authority said on Thursday.
Statistics from China indicate that about 2 per cent of people infected with the new virus have died, suggesting
it may be deadlier than seasonal flu but less deadly than SARS.
"The coronavirus is continuing to spread so we need to remain cautious
But markets now appear to think that there will be a quick economic recovery after a short-term slump," said Masahiro Ichikawa, senior
strategist at Sumitomo Mitsui DS Asset Management.
The 10-year US Treasuries yield rose back to 1.653 per cent from a five-month low of
1.503 per cent set last Friday.
In the currency market, the safe-haven Swiss franc and the yen retreated.
The Swiss franc eased to 0.9738
franc per dollar, having lost 0.4 per cent on Wednesday.
The yen stepped back to 109.85 yen, compared with a three-week high of 108.305 hit
on Friday.
The euro stood at $1.0998, having shed 0.4 per cent in the previous session.
US West Texas Intermediate (WTI) crude gained 0.73
per cent to $51.12 per barrel, extending its rebound from a 13-month low of $49.31 touched on Tuesday.
Still it is down about 16 per cent so