Asian Stocks Up Despite COVID-19 Uncertainty
Asian stock markets were up on Tuesday with modest gains despite the economic uncertainty unleashed by the COVID-19 pandemic.
Japan’s Nikkei 225 rose 1.89%. Conglomerate Softbank Group saw its shares gain 2.95% as they rallied from an earlier drop of more than 3% the day before. The company announced that its Vision Fund expected to see a loss of JPY 1.8 trillion ($16.69 billion) for the 2019 fiscal year due to a “deteriorating market environment.”
China’s Shanghai Composite was up 0.57% while the Shenzhen Component was up 0.93%. with Chinese trade data for March set to be released later in the day.
Investors will be taking a close look at the data as Wuhan lifted its three-month lockdown in the previous week.
South Korea’s gained 1.6% as the country prepares to vote for its National Assembly representatives on Wednesday.
The S&P/ASX 200 rose 0.49% and Hong Kong’s Hang Seng Index was up by 0.4% as investors resumed work from the four-day Easter weekend.
But some investors are skeptical as companies enter into a difficult earnings seasons and governments assess the pandemic’s economic damage as the search for a cure continues.
“Companies, analysts, traders, investors and strategists to some extent are ‘flying into earnings season without instruments, the analyst said. “The unprecedented nature of the economic shutdown, social distancing and sheltering in place ordered by officials provides an overhang of uncertainty.”