Chinese shares lead gains in Asia, Shanghai composite up 1.3%

Asia Pacific markets mostly traded higher on Wednesday, building on gains from the previous session, after stocks sold off recently due to worries over the new coronavirus outbreaks. Chinese shares led gains in the region, with the Shanghai composite up 1.25% to around 2,818.09. The Shenzhen component index rose 2.14% to 10,305.50 and the Shenzhen composite added 2.48% to about 1,678.63. The Chinext start-up board was up more than 3% to around 2,180.29.

On Monday, stocks in mainland China had plummeted more than 7% after they returned to trade following an extended holiday as the rapidly spreading pneumonia-like virus spooked investors. Japan’s Nikkei 225 advanced 1.02% to 23,319.56 while the Topix index added 1.04% to 1,701.83. The yen, considered a safe-haven asset in times of market uncertainties, changed hands at 109.42 per dollar, weakening from levels below 108.80 earlier in the week.

In South Korea, the Kospi index erased some of its near 1% gains to trade up 0.36% at 2,165.63. Hong Kong’s Hang Seng index gave up most of its gains of around 0.83% earlier to trade up 0.27%. Australia’s benchmark ASX 200 rose 0.39% to 6,976.10, as the heavily weighted financial subindex gave up earlier gains to finish fractionally lower. Major banking stocks in the country closed mixed, with Commonwealth Bank shares dropping 1.22%.