Coronavirus News Asia

Market wrap: Gains in Asia despite clouds

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Trade of the Day: Stocks make tentative gains as oil edges higher; gold, yen and US Treasuries advance.

Quote of the Day: “Q1 have had Tesla written all over it, as Elon Musk’s rollercoaster ride is something special. Elon Musk’s electric car company went from reaching the sky, following an incredible short squeeze, to slamming the ground in just a matter of four weeks. For now the outlook depends on Chinese production starting to recover, which might get the Tesla ball rolling again. However, Musk could end up stuck in the mud of a recession,” Peter Garnry, Saxo Bank Head of Equity Strategy, said.

Stock of the day: CanSino Biologics rose as much as 11.2% after it said phase II clinical trials for a vaccine against coronavirus would resume soon.        

Number of the Day: $25 billion – The loss to the telecom industry as international travel collapses, cutting data-roaming revenues.

Tip of the Day: “We prefer up-in-quality and up-the-capital-structure exposures, especially those with strong policy support, over the next six to 12 months. Within equity markets, that means a preference for the US market and the quality and ‘min vol’ style factors. We also prefer credit over equities given bondholders’ preferential claim on corporate cash flows in a highly uncertain economic environment. We stay neutral on global equities on a tactical horizon, recognizing the wide uncertainties around the path of the outbreak in coming quarters, but see value for investors with long investment horizons,” BlackRock strategists said in a note.

Financial markets made tentative advances ahead of the earnings season with economic data and profit warnings already indicating the financial damage made by the still spreading coronavirus.

Also in today’s Asia Times Financial:

Coronavirus slashes China’s Q1 trade surplus by 80%

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