Virus fears: Asian markets mostly down after two-day rally

France’s economy suffered its worst contraction during the first three months of this year since World War II

HONG KONG: Most Asian equities retreated on Wednesday after a two-day rally as investors closely track developments in the coronavirus crisis, while the oil market continued to fluctuate ahead of a crucial producers’ meeting.

While the deadly disease continues to sweep across the planet, signs that the rate of infections is possibly levelling out and countries are preparing to ease some lockdown restrictions have instilled a semblance of optimism this week.

However, the scale of the fight was laid bare by official data showing France’s economy suffered its worst contraction during the first three months of this year since just after the World War II. The French central bank said that in the last two weeks of March economic activity plunged 32%.

“Signs that the number of new daily coronavirus cases is topping out... is driving expectations that social distancing measures will be lifted soon,” said Stephen Innes at AxiCorp.

Published in The Express Tribune, April 9^th, 2020.

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