HONG KONG (Nikkei Markets) -- Asian shares outside of Japan rebounded Tuesday, tracking record-high U.S. equities.
The Nikkei Asia300 index of companies outside Japan advanced 1.1% to 1,370.27. The gains came after the S&P 500 Index and the Nasdaq Composite overnight recovered from early losses to hit record highs. Equity index futures indicated that both the gauges could climb further Tuesday.
China on Tuesday reported more than 100 deaths in a single day from the coronavirus and said the death toll from the epidemic had crossed 1,000. While the death toll increased, the number of fresh infections declined. There were 2,478 new confirmed cases in China, down from 3,062 on the previous day. Analysts have marked down the global economic growth this quarter and reckon that the rebound could take place in the second or third quarter depending on when the epidemic could peak.
"Our best guess is that the economic disruption related to the coronavirus will cost the world economy over $280bn in the first quarter of this year. If we're right, then this will mean that the global GDP will not grow in quarter-on-quarter terms for the first time since 2009," Capital Economics said in a note. "We assume the virus will be contained soon, and that the lost output is made up in subsequent quarters."
In major winners on the A300 gauge on Tuesday, Tencent Holdings added 2.1% and H-shares of China Construction Bank rose 2.4%. China Vanke advanced 1.7% and China Overseas Land & Investment gained 3.7%. An index of Chinese companies listed in Hong Kong added 1.3%. Chinese electric carmaker BYD was among the few losers, declining 3.5% following a 44% decline in total sales volume for January.
Singapore Exchange rose 3%. The bourse operator said Tuesday that total securities market turnover increased 27% on-month in January to S$25.6 billion ($18.4 billion).
Singapore Technologies Engineering advanced 1% after its aerospace arm d secured a contract to provide maintenance services to Qantas's Boeing 737-800 and Airbus A330 aircraft.
Sembcorp Industries added 0.5% as the conglomerate won a project to build Singapore's largest floating solar photovoltaic system.
Hon Hai Precision Industry climbed 1.1%. The biggest assembler of iPhones received approval to reopen two major plants in China that were shut because of the coronavirus, Reuters reported.
MediaTek jumped 2.6% after the Taiwanese fabless semiconductor company said sales last month increased 22% from a year earlier.