Asian shares trade in green but COVID-19 caps gains

TOKYO- Asian shares gained on Wednesday, with Australian shares heavily contributing to the upbeat market activity. However, the margin of risk for equities remains wide as the novel coronavirus contagion brings constant disruptions to the world economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan increased up to 0.33%. Australian shares recovered from underperformance with 2.89% gains. It managed to recover a 2% loss from its previous session as new coronavirus cases subsided in number and oil demand brought relief to the market.

China shares raked in 0.18% gains as optimism emerged that the world’s second-largest economy is starting to recuperate from virus outbreak damages. South Korean shares also advanced with 0.19% gains.

Despite upbeat mood, S&P E-Mini futures placed lower in the Asian trading board indicating that investors remain cautious. Japanese shares also ran bear due to the high number of virus cases in Tokyo as the possibility of lockdown dragged indexes further.