Feb 3 (Reuters) - Asian stocks sank in January, ending a
four-month-long rally, as a coronavirus outbreak in China sapped
investors' risk appetite and raised concerns about economic
impact from the epidemic.
The MSCI's broadest index of Asia-Pacific shares
.MIAP00000PUS shed 2.86% in January, compared with a decline
of about 1.17% in the MSCI's global share index.
.MIWD00000PUS .
The coronavirus that originated in the central Chinese city
of Wuhan last month has killed more than 350 people, disrupted
supply chains and curbed travel, which economists say will weigh
on economic growth in China and its trading partners.
Citigroup revised its full-year forecast for China's GDP
growth to 5.5% in 2020 from 5.8% at the end of last month.
JPMorgan, meanwhile, trimmed its forecast for global growth in
the current quarter by 0.3 percentage point.
Philippines .PSI and Hong Kong .HSI shares lead declines
in regional equities last month. The two markets fell about 7.9%
and 6.7%, respectively, in January.
China shares .SSEC , however, fell just 2.4% as financial
markets in the country began an extended Lunar New Year holiday
on Jan. 24. The Shanghai Composite index plummeted as much as
8.73% when the market reopened on Monday.
Appetite for Asian shares remains weak against the backdrop
of the coronavirus outbreak in China, some analysts said.
"Sentiments remain very fragile as markets dynamically try
to get a sense of when containment will catch up with
contagion." Vishnu Varathan, a senior economist at Mizuho Bank,
said in a note to clients.
"Until then, backstops and stabilization may be more a
punctuation in the 'risk off' environment rather than a
turnaround in sentiment."
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Asian stocks' Jan 2020 price performance https://tmsnrt.rs/2GQfVwC
Asia Pacific equities' performance in 2020 https://tmsnrt.rs/2vFDwhe
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