The day starts with the release of dismal economic data from Australia and Japan, which showed part of the negative impact of the coronavirus outbreak on economic activities.
Australia’s flash services PMI dipped sharply in the contraction zone to hit a record low of 39.8 in March due to travel bans and cancellations of events, compared to 49.0 in February.
The manufacturing PMI, however, was resilient as it inched down to 50.1 this month from 50.2 in February, to remain in the expansion territory.
In Japan, the manufacturing PMI dropped to a seasonally adjusted 44.8 from 47.8 in February, the lowest since April 2009, whilst services PMI plummeted to a seasonally adjusted 32.7 from 46.8 a month earlier, marking the lowest since the start of the services sector survey in September 2007.
Yet, Asian indices managed to rebound today, with Japan’s Nikkei leading gains with 7.1 percent increase. South Korea’s KOSPI augmented 9 percent, China’s CSI 300 finished 2.7 percent up and Australia’s S&P/ASX 200 added 4 percent.
Later in the day,
eyes will focus on PMI data for the euro area, U.K. and the U.S. to track the economic
damages of the Covid-19 spread on major economies.