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Stocks in Asia were little changed in Wednesday morning trade amid heightened concerns over the spread of the coronavirus that has killed 6 in China so far.
The Nikkei 225 was largely flat in early trade, as shares of index heavyweight Fast Retailing fell 1.29%. The Topix index dipped slightly.
The Kospi in South Korea hovered around the flatline. The Bank of Korea said Wednesday the country’s economy grew 1.2% on a seasonally adjusted basis in the fourth quarter as compared with three months earlier. That was the fastest expansion since the third quarter of 2017, beating an estimated 0.8% growth from a Reuters poll.
Meanwhile, stocks in Australia rose in morning trade, with the S&P/ASX 200 adding 0.3%.
Overall, the MSCI Asia ex-Japan index was largely flat.
Overnight on Wall Street, stocks declined after the Centers for Disease Control confirmed the first U.S. case of a mysterious coronavirus that has infected hundreds in China.
The Dow Jones Industrial Average fell 152.06 points to close at 29,196.04 while the S&P 500 slipped 0.3% to end its trading day at 3,320.79. The Nasdaq Composite also shed 0.2% to close at 9,370.81.
Public health officials have confirmed more than 300 cases of the illness, which has evoked memories of the 2003 outbreak of severe acute respiratory syndrome, or SARS, in China. Health officials have also confirmed cases in Thailand, South Korea, Japan and Taiwan.
“Market sentiment has turned mildly negative as investors become cautious following news of growing spread of a SAR-like virus,” Rodrigo Catril, senior foreign exchange strategist at National Australia Bank, wrote in a morning note.
“While it is still early days, there is a risk that any outbreak could depress consumer sentiment and spending, including tourism as well as travel and transport related business,” Catril said. “This time the epicentre is in China, so the economic growth impact could be more severe and thus this is certainly a theme to watch for markets.”
Currencies
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.531 after seeing lows around 97.4 earlier.
The Japanese yen traded at 109.88 per dollar after strengthening from levels above 110 yesterday. The Australian dollar changed hands at $0.6843 after declining from levels above $0.687 in the previous session.
Here’s a look at what’s on tap in the day ahead:
- Malaysia: Bank Negara Malaysia’s monetary policy statement
- Taiwan: Unemployment rate and industrial production for December at 4:00 p.m. HK/SIN
— CNBC’s Berkeley Lovelace Jr. contributed to this report.