SINGAPORE — Stocks in Asia-Pacific were mixed in Wednesday morning trade as investors watch for developments on the coronavirus front.
In Japan, the Nikkei 225 advanced fractionally while the Topix index dipped 0.13%.
Mainland Chinese stocks were higher in early trade, with the Shanghai composite up slightly while the Shenzhen component advanced 0.232%. Hong Kong’s Hang Seng index rose 0.24%.
South Korea’s Kospi declined 0.33%. Shares in Australia declined, as the S&P/ASX 200 dipped 0.22%.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.38% higher.
In corporate news, Hong Kong-listed shares of Lenovo jumped more than 11% in Wednesday morning trade after the firm announced Tuesday a proposed issuance and admission of Chinese depositary receipts on the Shanghai Stock Exchange’s Science and Technology Innovation Board.
Coronavirus developments
The Japanese government is set to expand the state of emergency to more areas on Wednesday, according to local media reports. That comes after Japanese Prime Minister Yoshihide Suga recently declared a state of emergency in Tokyo and three other areas in a bid to stem a rise in coronavirus infections.
Meanwhile, local Chinese authorities in regions near Beijing are stepping up restrictions on social activity following a rise in new coronavirus cases.
Nomura Chief China Economist, Ting Lu, wrote in a note Monday: “The worsening coronavirus situation will impact economic activity, and markets may need to temper their expectations for strong pent-up consumption demand in the coming (Lunar New Year) holidays in mid-February.”
Overnight stateside, the Dow Jones Industrial Average advanced 60 points to close at 31,068.69. The Nasdaq Composite ended its trading day day up 0.3% at 13,072.43. The S&P 500 rose fractionally on the day to 3,801.19.
The moves stateside came as the yield on the benchmark 10-year Treasury note briefly traded at 1.187%, its highest level since March. It later eased and was last at 1.1154%. Rates have been rising since Democrats secured majorities in both the House and Senate, opening up the door for additional fiscal stimulus.
Investors will also watch for developments from Washington, with the U.S. House set to push ahead with efforts to remove President Donald Trump from office over his role in sparking last week’s deadly attack on the Capitol.
U.S. Vice President Mike Pence, however, said Tuesday night he will not remove Trump from office. The developments came just days ahead of President-elect Joe Biden’s inauguration on Jan. 20.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 89.971 as it slipped below the 90 level.
The Japanese yen traded at 103.54 per dollar, stronger than levels above 104 against the greenback seen earlier this week. The Australian dollar changed hands at $0.7776, having risen from levels below $0.77 touched earlier in the trading week.
Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.87% to $57.07 per barrel. U.S. crude futures rose 0.86% to $53.67 per barrel.
— CNBC’s Evelyn Cheng contributed to this report.
Source: CNBC