A total of 28,018 cases have been confirmed, 563 have died and 1,153 have been discharged from hospitals, according to the latest outbreak data released by the national health and construction commission on Thursday. Concerns about the financial impact of China’s coronavirus outbreak have receded as markets have digested and reacted in recent days. Asian shares rose after a broad gain on Wall Street overnight as the dust settled on the trump impeachment trial and ADP employment data was positive. Risk sentiment continued to improve, with the dollar holding firm at 98 and spot gold firming above 1550 as markets continued to focus on a new outbreak of pneumonia and await Friday’s non-farm payrolls report.
The latest outbreak: 3,694 new cases were confirmed nationwide, 28,018 cases were confirmed, 563 cases were confirmed, and 1,153 cases were discharged from hospital
A total of 3,694 new cases were reported in 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps from 0:00 to 24:00 on February 5, according to the latest data from the national health and construction commission on February 6. There were 640 new severe cases, 73 new deaths (70 in hubei, 1 in tianjin, 1 in heilongjiang and 1 in guizhou), and 5,328 new suspected cases.
By 2:00am on February 5, a total of 28,018 confirmed cases had been reported in 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps. A total of 282,813 close contacts were traced, including 186,354 who were under medical observation.
A total of 42 confirmed cases have been reported from Hong Kong, Macao and Taiwan: 21 from the Hong Kong special administrative region (1 death), 10 from the Macao special administrative region and 11 from the Taiwan region.
According to chinanews.com, 707 new cases of pneumonia contracted by the new coronavirus in non-hubei regions of China fell for two days from 0 to 24 on February 5. From 0 to 24 o ‘clock on February 4, 731 new cases of coronary pneumonia were confirmed in non-hubei regions, and 890 new cases were confirmed in non-hubei regions from 0 to 24 o ‘clock on February 3.
News of the spread of pneumonia in China last week hit global risk sentiment. Stocks and risk assets rose this week as China’s response to the outbreak raised hopes it could be contained.
More than 99 percent of the cases have occurred in China, where strict quarantined measures have been put in place and the central bank has pumped trillions of renminbi into the financial system, partially reversing a recent flight to safe-haven assets, Reuters noted.
In addition, the ADP employment data released on Wednesday was positive, which further boosted market confidence. ADP added 291,000 jobs in January, well ahead of market expectations for a 156,000 gain, revised from a 19,000 gain to a 202,000 gain. January’s job growth was the biggest since May 2015.
Meanwhile, the U.S. service sector activity picked up last month and new orders rose. The institute for supply management’s non-manufacturing index rose to 55.5 last month, the highest since August.
Separately, on Wednesday, the U.S. Commerce Department reported a $48.9 billion trade deficit in December. The projected deficit is $48.2 billion. Critics point out that the US trade deficit fell in 2019 for the first time in six years. Despite the slowdown in consumer spending, it helped keep the U.S. economy grew modestly in the fourth quarter.
Buoyed by a strong series of data, the U.S. dollar index.dxy broke through the 98 barriers overnight and peaked at 98.33, continuing to hover near 98.30 in early Asian trading on Thursday.
“The U.S. economy has been showing considerable resilience for a long time, and to the extent that the global economy is about to improve, that’s good for the United States,” said Wells Fargo’s Nelson.
U.S. stocks rose for a third straight day on Wednesday as encouraging U.S. economic data and concerns about the financial impact of China’s coronavirus outbreak eased.
Overnight’s positive performance on Wall Street also extended to Asian markets, where most stocks opened higher, with the hang seng, nikkei 225 and South Korea’s kospi all up more than 1 percent.
“There are very few alternatives to stocks in this low-interest-rate environment,” said Cherry Lane Investments partner Rick Meckler. “as long as the economy shows it can survive, people will keep coming back to [stocks]. Now they are more worried about missing the market than they are about selling off.”
While U.S. stocks rose in line with U.S. stocks, spot gold held up, rising and falling sharply to settle above $1,550, driven by low buying and easing central bank policy conditions.
“The general trend is up,” said Bob Haberkorn, senior market strategist at RJO Futures. “people want to hold gold now just because of central Banks and what they’re doing over the long term. So people see the decline as an opportunity to buy more gold.”