Markets in Asia Pacific began to recover Tuesday, and US stock futures jumped more than 800 points a day after novel coronavirus fears and an oil price war sparked a worldwide panic.
Australia’s S&P/ASX 200 closed up 3.1%, the index’s best day since November 2016. The strong showing saved the index from entering into a bear market, defined as a 20% drop below a recent high.
For a time, Australia’s benchmark was the only major index in Asia Pacific that was trading firmly in the green as stocks struggled to find direction early in the day. But by early afternoon, Hong Kong’s Hang Seng Index was up nearly 2%, finding some stability after swinging between gains and losses. China’s Shanghai Composite was up 1.9%. South Korea’s Kospi was 0.3% higher.
Japan’s Nikkei 225 increased 1.2%, recovering from earlier losses. The government there is expected to soon announce more emergency measures to contain the spread of the virus. Japanese companies are also feeling the pain from the toll the virus took on China last month: Nissan’s vehicle sales in China dropped 80% in February compared to a year earlier.
US futures rally: US stock futures, meanwhile, are recovering after Monday’s historic declines. After initially falling after hours, Dow futures shot up and were last trading up 850 points, or 3.6%, after President Donald Trump said he would press lawmakers to enact a payroll tax cut and ensure assistance is available to hourly workers amid a roiling coronavirus pandemic that’s caused deep economic concerns and stock market shock. The Dow had ended the day with its biggest point drop in history, closing Monday down 2,014 points, or 7.8% — its worst day since the 2008 financial crisis.