In Asian Equity Markets China indices more than 7% on Monday morning as they returned to trade following an extended holiday amid an ongoing coronavirus outbreak. The moves on the mainland came following an extended holiday amid an ongoing virus outbreak that has taken more than 300 lives in the country so far. Meanwhile, Hong Kong’s Hang Seng index rose 0.59% as shares of Chinese tech juggernauts Tencent and Alibaba jumped 2.09% and 1.7%, respectively. In Japan, the Nikkei 225 fell 0.92%.
In Currency Markets the yuan and its proxy, the Australian dollar, were on the defensive on Monday as China’s share market reopened with big losses after the Lunar New Year break and anxiety over a virus outbreak in the country kept investors on guard. The offshore yuan eased 0.1%, hitting one-month low of 7.0117 per dollar while its onshore unit fell over 1% from its levels before the holiday to 7.0125 per dollar. The Australian dollar fetched $0.66925, up slightly on the day but was precariously close to its 10-1/2-year low of $0.6670 touched last October.
In Commodities Markets oil prices extended their losses on Monday, dragged down by worries about lower demand in China, the world’s largest oil importer, following a coronavirus outbreak there. Brent and U.S. WTI crude fell for a fourth week in a row last week after airlines canceled flights to China. Brent crude was at $56.14 a barrel, down 48 cents, or 0.9%, after losing nearly 12% in January, the steepest monthly decline since November 2018. U.S. WTI crude fell 24 cents to $51.32 a barrel, after earlier hitting a session low of $50.42.
In US Equity Markets indices fell more than 1% on Friday, as mixed corporate earnings added to worries over the impact of the coronavirus outbreak on global growth. The S&P 500 fell 1.30%, at 3,240.95 and the Nasdaq Composite fell 1.13%, at 9,193.72. Oil majors Exxon Mobil Corp and Chevron Corp fell about 3% after disappointing results. Visa Inc fell 3.7% as it fell short of analysts’ estimates for first-quarter revenue and warned of incentives hitting 2020 results.
In Bond Markets benchmark 10-year Treasury yields dropped to more than three-month lows on Friday and two-year note yields fell to their lowest levels since 2017 as concerns about the spreading coronavirus boosted demand for safe-haven assets. Benchmark 10-year note yields fell as low as 1.519%, the lowest since Oct. 8. Thirty-year bond yields briefly fell below 2% for the first time since September. Two-year note yields, which are the most sensitive to interest rate policy, fell to 1.337%, the lowest since September, 2017.