HSI Rises As Asian Markets Soar, Oil Prices Fall

Hong Kong shares ended Monday morning more than 1 percent higher, with traders cheered by news that fresh coronavirus infection numbers were slipping in some of the world's worst hit countries.

The Hang Seng Index added 1.1 percent, to 23,493.

Most Asian markets rose, though oil prices were rocked after a meeting of top producers was delayed.

Tokyo went into the break more than 2 percent higher, while Sydney also piled on more than 2 percent on new infections in Australia showed signs of falling.

Seoul added nearly 2 percent, while Singapore, Manila and Jakarta were all more than 1 percent higher.

The virus "appears to be reaching a peak in Europe, with Italy seeing the number of patients in intensive care falling for the second consecutive day", said National Australia Bank's Tapas Strickland.

"Note, Italy imposed a countrywide lockdown on March 9, and so is supportive of the view that the virus peaks and peters out after 15-30 days following a strict lockdown."

"Focus in markets will now turn to the path out of lockdown and to what extent containment measures can be lifted without risking a second wave of infections."

And Lindsey Piegza, at Stifel Nicolaus & Co told Bloomberg TV she was hopeful that the crisis can be brought under control and the US economy reopened "by the end of April, early May".

"If that does occur, it's likely that we're able to control the downturn from a depressionary scenario into a recessionary scenario".

However, observers remain cautious as the US enters what President Donald Trump said would be "a time that's going to be very horrendous" with "some really bad numbers".

Erik Nielsen, of UniCredit SpA, said: "There is light at the end of the tunnel but it's still a long tunnel."

Attention this week will be on a planned meeting of Opec and other key crude producers aimed at easing a supply glut that has sent oil prices crashing.

But even if a deal is reached there is widespread scepticism that cuts of 10 million barrels a day that have been suggested will be enough to help the oil market owing to the collapse in demand caused by coronavirus.

On currency markets the pound was struggling after news broke that British Prime Minister Boris Johnson had been admitted to hospital as a "precautionary step" as he had failed to shake off coronavirus symptoms after 10 days. (AFP)

______________________________