Tue, 26 May 2020

Mixed trading on Asian bourses, Japan the only gainer

Lola Evans
08 Apr 2020, 18:29 GMT+10

SYDNEY, Australia - Stocks in Asia were mixed on Wednesday, as the two-day rally that began the week appeared to be running out of steam.

"There is reason to be cautious as this looked to be a relief rally ahead of next week's start of Q1 earning season and before data reveals the depth of the virus impact," analysts at JPMorgan said in one of two notes reported by Reuters Thomson.

"Data shows the recent move higher has been accompanied by short covering and de-risking rather than active risk taking on the long side."

Separately, there was lingering concern that the impact of the coronarvirus could be several years in the making.

"While the virus' 'curve is flattening', the economic effects of the corona crisis will linger for years in our view," Commonwealth Bank of Australia economist Joseph Capurso said in a note.

"Economies will take time to reopen, some businesses will not reopen, and unemployment will take years to return to levels reported at the end of 2019."

The big mover on Wednesday, and only gainer of the major indices, was the Nikkei 225 which jumped 403.06 points or 2.13% to 19,353.24.

China's Shanghai Composite slipped 5.39 points or 0.19% to 2,815.37.

The Australian All Ordinaries dipped 42.50 points or 0.80% to 5,258.80.

In Hong Kong, the Hang Seng fell 282.92 points or 1.17% to 23,970.37.

The major currencies softened a little in Asian trading after rebounding on Tuesday. The euro eased to 1.0853, while the British pound pulled back to 1.2301. The Japanese yen was changing hands at 108.79, while the Swiss franc eased a fraction to 0.9727.

The Canadian dollar dropped to 1.4045. The Australian dollar declined to 0.6138, while the New Zealand dollar eased to 0.5953.

Overnight on Wall Street, the Dow Jones Industrial Average was down 26.13 points, or 0.12%, at 22,653.86.

The Standard and Poor's 500 eased 4.27 points, or 0.16%, to 2,659.41.

The Nasdaq Composite fell 25.98 points, or 0.33%, to 7,887.26.

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