Asian markets mixed after virus-fuelled global bloodbath

Asian markets were mixed Tuesday as bargain-buying after previous day's bloodbath tempered fears that coronavirus will develop into a pandemic and hammer global ecomy. News at weekend that COVID-19 was w spreading and claiming lives far beyond China sparked a flood to safety on trading floors across world, with Dow on Wall Street suffering its worst day in two years.

With death toll at around 2,700 and 80,000 infected, World Health Organization said outbreak had "peaked" in China but warned that all countries should prepare for a "potential pandemic".

"As number of COVID-19 infections outside of China rises, investors are considering potential ramification on global ecomy beyond weaker growth in China and supply chain disruptions," JP Morgan Asset Manment's Tai Hui said in a te.

"Equity markets will remain volatile in near term, driven by new infection numbers around world." Tokyo led losses as markets reopened to play catch-up with Monday's global sell-off.

Nikkei ended more than three percent lower, while Sydney and Wellington each shed more than one percent and Shanghai dipped 0.6 percent. re were also losses in Bangkok and Jakarta.

However, Hong Kong added 0.2 percent, while Seoul jumped 1.2 percent, having plunged almost four percent Monday in reaction to a spurt of infections in South Korea at weekend. Singapore added 0.6 percent, Taipei rose 0.1 percent and Mumbai put on 0.3 percent.

"re is question financial markets are coming round to realisation that this particular crisis is likely to have a slightly longer shelf life than many thought was case a couple of weeks ago," said CMC Markets UK analyst Michael Hewson in a te.

"However, flu outbreaks are hardly anything new. y happen every year and according to World Health Organization flu kills up to 650,000 a year, yet markets are reacting to an outbreak that has so far only affected a fraction of that number." While region is suffering ar broad retreat, losses are being tempered by bargain-buying, while reports said a US firm had developed a possible vaccine that had been sent for testing.

And analysts said recent losses would provide a good buying opportunity as y looked past virus and contemplated an improving ecomic outlook.

World markets had been rallying at start of year on hopes for global growth in wake of China-US trade pact and as indicators suggested a slowdown appeared to be bottoming out.

David Wong, an investment strategist at AllianceBernstein in Hong Kong, said: " benefit of global quantitative easing and trade war truce should ultimately provide more upside to global ecomy than coronavirus will apply downside risk." return to equity markets also saw gold fall sharply, losing three percent after hitting a seven-year high on Monday.

Oil prices, which tanked around 3.8 percent, were also slightly higher, though concern about impact on demand for commodity in China -- world's top crude consumer -- was keeping gains subdued.

High-yielding, riskier currencies were also benefitting, with South Korean won up 0.8 percent, Australia's dollar 0.5 percent higher and Mexican peso gaining one percent.

Tokyo - Nikkei 225: DOWN 3.3 percent at 22,605.41 (close) Hong Kong - Hang Seng: UP 0.2 percent at 26,860.44 Shanghai - Composite: DOWN 0.6 percent at 3013.05 (close) Dollar/yen: UP at 110.84 from 110.71 at 2200 GMT Euro/dollar: UP at $1.0853 from $1.0852

Pound/dollar: UP at $1.2941 from $1.2924 Euro/pound: DOWN at 83.86 pence from 83.95 pence Gold: DOWN 3.0 percent at $1,637.21 Brent Crude: UP 0.8 percent at $56.74 per barrel West Texas Intermediate: UP 0.8 percent at $51.86 per barrel New York - Dow: DOWN 3.6 percent at 27,960.80 (close) London - FTSE 100: DOWN 3.3 percent at 7,156.83 (close) (AFP) RS RS

(Picture Credit: representative im/ PTI)