Asian stocks ignore China data amid coronavirus crisis

• Asian equities remain under pressure as the virus outbreak turns fierce.
• China’s Caixin PMI offered positive surprise while following the footsteps of official data.
• Central bank updates tried to placate traders.
• NIKKEI down more than 4.0% and so does markets in India, MSCI’s gauge drop 0.80%.

With the coronavirus pandemic taking a toll on the global financial markets, the upbeat performance of China’s activity numbers failure to convince buyers. While portraying the pessimism, the MSCI’s gauge of Asia-Pacific shares outside Japan drops 0.80% whereas Japan’s NIKKIE declines more than 4.0% amid early Wednesday.

Not only grim comments by US President Donald Trump, downbeat forecasts of the US GDP and equity market performances also weighed on the market sentiment during early Asia.

In doing so, the risk-tone paid a little heed to the RBA minutes and BOJ comments, not to forget the latest statements from the Bank Indonesia (BI) policymaker that tried to placate traders, .

Further, rising coronavirus (COVID-19) numbers from New York City, Italy and most Asia also contributed to the risk aversion, which in turn exerted downside pressure on equities.

Indian benchmarks are down near 4.0% as foreign investors registered biggest sell-off, 30% as per Reuters, for the quarter ended March, while Chinese gauges register mild gains with Caixin PMI above 50.00 level.

Stocks in Indonesia, Australia and New Zealand are also on the positive side amid expectations of further easing whereas Hong Kong’s HANG SENG drops more than 2.34% by the press time.

While the coronavirus crisis is likely to keep global equities under pressure, today’s US activity numbers and ADP Employment Change will be closely followed for short-term direction.