Asian Stocks Slide on Virus Concerns; Havens Rise: Markets Wrap

(Bloomberg) -- For a fresh perspective on the stories that matter in Australian business and politics, sign up for our new weekly newsletter.Asian stocks resumed declines, with Chinese shares bearing the brunt of losses amid ongoing efforts to control the widening coronavirus outbreak. The yen strengthened and Treasuries ticked higher.A bout of risk aversion returned to markets Thursday, with China’s CSI 300 Index sliding 2%, set for the worst loss since July on the final day of trading for mainland Chinese stocks before the weeklong Lunar New Year holiday. Shares also fell in Hong Kong, South Korea, Japan and Australia, while U.S. futures were little changed. The Chinese city at the center of the outbreak suspended outbound flights and rail service, as the country ramps up efforts to contain the illness. The Australian dollar rose with the country’s bond yields after better-than-forecast jobs data lifted sentiment on the economy.With global equities still close to record highs, investors are on high alert for any developments that could derail the momentum. Caution has returned this week on concerns the coronavirus that has killed at least 17 people could turn into a global pandemic.“Markets have gotten a little bit ahead of themselves and they have probably gotten a little bit complacent,” Burns McKinney, portfolio manager at Allianz Global Investors, told Bloomberg TV in New York. “We have seen policy makers this time move quickly and take it very seriously.”Meanwhile, the European Central Bank later decides on policy when its two-day meeting concludes., followed by a press conference with President Christine Lagarde. The pound climbed on Wednesday after U.K. Prime Minister Boris Johnson’s Brexit deal cleared its final hurdle in Parliament.Elsewhere, oil extended declines from its lowest close in seven weeks on speculation China’s coronavirus outbreak may dent demand as the market tackles a glut of global crude supplies.Here are some events to watch out for this week:Companies including Intel Corp. and Procter & Gamble Co. will post results.Policy decisions are due from central banks in Indonesia and the euro region.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, continues in Davos, Switzerland.These are the main moves in markets:StocksFutures on the S&P 500 Index were flat as of 12:28 p.m. in Tokyo. The underlying gauge rose less than 0.1% on Wednesday in New York.Japan’s Topix index retreated 0.5%.Hong Kong’s Hang Seng declined 1.4%.The Shanghai Composite lost 1.5%.South Korea’s Kospi index declined 0.8%.Australia’s S&P/ASX 200 Index fell 0.7%.CurrenciesThe yen rose 0.2% to 109.67 per dollar.The offshore yuan held at 6.9137 per dollar.The Aussie rose 0.5% to 68.76 U.S. cents.The British pound was at $1.3134.The euro remained at $1.1090.BondsThe yield on 10-year Treasuries fell two basis points to 1.75%.Australia’s 3-year yield advanced four basis points to 0.73%.CommoditiesWest Texas Intermediate crude dropped 1.4% to $55.96 a barrel.Gold slid 0.1% to $1,556.57 an ounce.\--With assistance from Scarlet Fu and Joe Weisenthal.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Cormac Mullen, Ravil ShirodkarFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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