- HSBC falls to lowest level since 2009 during the global financial crisis
- Gauge of private, smaller China manufacturers shows expansion in March, smashing expectations
Asia-Pacific stock markets were mixed in early trading Wednesday as concerns about rising death toll from coronavirus pandemic in the US and elsewhere overshadowed improvements in Chinese economic data.
President Donald Trump warned of a "very, very painful two weeks" amid signs the viral outbreak is taking its toll on the retail and hospitality sectors. The US is becoming a new hotspot with more than 3,870 casualties, topping China's total of about 3,300.
Hong Kong stocks slipped as HSBC and Standard Chartered plunged after cancelling dividends. China stocks eked out some gains after small, private manufacturing data in March beat expectations, adding to the surprise gain among large manufacturers in the official gauge reported on Tuesday.
The Hang Seng Index fell 1.1 per cent as of 1:24pm local time, pressured by banks.
HSBC plunged 9 per cent to HK$40.15 " hitting its lowest since March 2009 during global financial crisis " while Standard Chartered tumbled 5.8 per cent.
HSBC is the fourth-largest stock on the benchmark in terms of weighting, accounting for 8.5 per cent of the index and nearly 90 per cent of its decline.
The Shanghai Composite Index rose 0.3 per cent. The Caixin/Markit PMI Index rose to 50.1 in March from an all-time low of 40.3 in February, as the world's second-largest economy battles a slowdown exacerbated by the pandemic.
Coronavirus: China's small factories stabilised in March after lockdown, private PMI shows
"Stock markets are reacting to what now seems to be a likely increase in the duration and breadth of coronavirus lockdowns in the US and elsewhere, which is pointing to a potentially deeper and longer-term hit to economic activity than was anticipated even a week ago," said Stephen Innes, chief global strategist at currency trading platform AxiCorp.
South Korea's Kospi Index fell 0.4 per cent, while the tech-heavy Kosdaq gained 0.9 per cent, after a government report showed exports slipping more than expected by 0.2 per cent in March from a year earlier.
Tokyo's Nikkei 225 fell 2.2 per cent. Japan's new Manufacturing Purchasing Managers' Index dropped to a seasonally adjusted 44.8 from 47.8 in February, its lowest point since April 2009. A reading of below 50 signals contraction.
Australia's S&P/ASX200 rose 3.1 per cent while New Zealand's S&P/NZX50 closed up 1.3 per cent. Singapore's Straits Times Index fell 1.3 per cent.
The US economy is now the focus of pandemic as officials predict death toll could rise to 100,000 to 240,000, even with social distancing guidelines. Globally, more than 41,000 people have died, and one third of humankind is on lockdown.
Wednesday marks the start of a new quarter, after the first three months were horrible due to the virus, which upended supply chains, ground air travel to a halt and upended businesses.
The Hang Seng Index lost 16.3 per cent last quarter, having fallen into a bear market in mid-March. The Shanghai Composite Index fell almost 10 per cent, while benchmarks in Japan, Korea and Australia lost about 20 per cent. The Dow crashed to its worst quarter since 1987.
"It's merely a case of unprecedented economic devastation that is hitting the screens where scenes from New York City in full stop are providing the horrific optics," Innes said.
Investors should expect to be "tethered to the risk yo-yo, if not anvil, for some time to come," he added.
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