The new coronavirus virus weakens investors’ positive sentiment

Daily Analysis - 23/01/2020

Japan exports lower than expected

coronavirus-affects-asian-markets


Thursday Japanese trade data revealed that Japan exports are dropping more than foreseen in December. Japanese exports for December fell more than 6%  as opposed to a year earlier. That was considerably weaker than expectations of a 4.2% contraction foreseen by economists in a Reuters poll.

The Japan Nikkei 225 moved lower almost 1% to finish at 23,795.43 while the Topix index also dropped 0.78% to close its trading session at 1,730.49. Meanwhile, Australia shares settled on the day, with the S&P/ASX 200 dropping 0.63% to 7,087.

Gold prices lower while investors wait for ECB


On Thursday the safe metal Gold dropped while wary investors anticipated a policy decision by the European Central Bank to be announced later today. However, increasing concerns over a virus outbreak in China contributed to finding support. Spot gold fell 0.1% at $1,557.90 per ounce while U.S. gold futures remained stable at $1,556.79. Now other precious metals like palladium rose about 1.5% to $2,511.89 an ounce while silver fell 0.2% to $17.74 per ounce.

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Oil extended its declines


On Thursday, Oil dropped to its weakest level in approximately a week falling more than 1% on concerns that the spread of a new virus from China may decrease fuel demand. U.S. West Texas Intermediate futures dropped about 85 cents to $55.87 a barrel after briefly dropping to its weakest level since last month while Brent crude futures fell to $62.38 a barrel.

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Japanese Yen rose as investors run for cover


The Japanese yen traditionally is seen as a haven due to Japan’s status as the world’s biggest creditor. The popular safe haven currency grew about 0.2% to a 14-day top of 109.55 per dollar while investors run for safety. The greenback scored its most powerful level in two weeks versus the weakening yuan, which exchanged at 6.9253 midsession.

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