Asian stocks dip as traders fret about global effect of virus

“Markets have taken a step back because the authorities won’t do any major stimulus until they are completely sure the virus has stopped, because there’s no point in doing it when people are sitting at home.”

China cut its benchmark lending rate earlier on Thursday, as anticipated, adding to a slew of measures in recent weeks aimed at cushioning the virus’s effect on the economy.

That kept Chinese stocks supported, while Japan’s Nikkei advanced 1% as an overnight slide in the yen is a boon for exporters, though the mood was more nervous elsewhere.

China had 394 new cases on Wednesday, the lowest since January 23. More than 2,100 people have died from the coronavirus in China, with eight deaths in other countries but not including the two from the quarantined cruise ship in Japan.

South Korea’s government reported 31 new cases of coronavirus on Thursday, after a new outbreak traced to a church, bringing the number of people infected in the country to 82.

In Japan, where the government has come under intense criticism for its handling of an outbreak on a cruise ship carrying about 3,700 people, broadcaster NHK reported that two passengers in their 80s had died.

Yen tumbles

Currency markets were still reeling from an overnight plunge in the Japanese yen, which fell even as safe-haven assets such as gold climbed.

The yen was undermined by a run of weak data this week, but traders were unnerved when it blew past a support level at 110.30/$, broadening and accelerating its fall after that.

It dropped nearly 1.4% against the dollar, its sharpest fall in six months, and 2% against the Norwegian krone — its sharpest daily drop in almost three years.