Stocks, currencies firmer

Researchers warned re-emergence of SARS-like virus in 2007
JOHANNESBURG – Emerging market stocks ticked higher on Friday on expectations of further monetary stimulus to mitigate the impact of the coronavirus epidemic on the global economy, while regional currencies largely shrugged off a raft of weak economic data.

A basket of emerging market equities was up 0.1percent, after declining in the previous session as China reported a spike in the number of new coronavirus cases, due mainly to a change in the diagnosis method.

On Friday, the outbreak had still shown no signs of peaking, with health authorities reporting more than 5000 new cases. The death toll from the epidemic now sits at 1380.

Still, the MSCI index recorded its second consecutive weekly gain as liquidity measures, including a cut in interest rates, by the Chinese central bank took hold.

The bank said it was ready to inject more cash into the system to boost business confidence and consumer spending, as early projections indicated growth in the world’s second-biggest economy would slow sharply in the current quarter.

Source: iol.co.za