As hopes the deadly new Coronavirus will have only a short-term impact on corporate earnings and economic growth prevailed, Asian markets rebounded Wednesday.
US and European markets did not carry over to Asia as investors bet on policymakers doing what is needed to minimize the fallout.
The illness, which has killed more than 2,000 people and infected over 74,000, has disrupted supply chains and forced the cancellation of high-profile sporting and cultural events.
As stimulus measures are rolled out in China and elsewhere, “Asia seems confident that the region’s governments will ‘do what it takes’ to offset the Coronavirus slowdown,” Jeffrey Halley, senior market analyst for Asia at OANDA, said in a commentary.
However, not everyone is convinced the economic impact will be fleeting, suggesting Wednesday’s gains could be temporary.
“The debate on whether (COVID-19) is a transient economic shock or worryingly a more longer-lasting global economic headwind appears to be shifting in favour of the latter following Apple’s admission,” said Rodrigo Catril of National Australia Bank.
China is the world’s biggest importer and consumer of oil, and crude prices have been particularly sensitive to the epidemic that has spread to nearly 30 countries and territories.