When and which COVID-19 vaccines are likely to be available in Asia Pacific

Pfizer Inc with partner BioNTech SE, Moderna Inc and AstraZeneca Plc have released trial data this month showing their experimental vaccines are effective in preventing the disease.

If regulators approve any of the vaccines in coming weeks, the companies have said distribution could begin almost immediately with governments around the world.

But many Asian countries do not expect to receive big amounts initially, and below are estimated distribution timelines, supply deals announced so far and clinical trials under way in the region.

PHILIPPINES

It is in talks with AstraZeneca for the supply of at least 20 million doses, which may arrive in the country in the second quarter of next year. It hopes to lock in 60 million doses in total and also is in talks with Pfizer and Sinovac.

Vaccine makers can apply for approval with the country's regulators even if no clinical trial is done in the Philippines.

AUSTRALIA

It has agreed to buy 135 million doses: 34 million from AstraZeneca, 40 million from Novavax Inc, 10 million from Pfizer and 51 million from CSL Ltd.

It expects delivery of 3.8 million doses of AstraZeneca's vaccine in January and February next year.

CHINA

China has not announced supply deals with Western drugmakers, which instead have partnered with private companies.

AstraZeneca's vaccine may be approved in China by mid-2021 and its Chinese partner Shenzhen Kangtai Biological Products plans to have annual production capacity of at least 100 million doses of the vaccine by end-2020.

For the Pfizer/BioNTech vaccine, a unit of Shanghai Fosun Pharmaceutical Group plans a Phase 2 trial.

Tibet Rhodiola Pharmaceutical Holding is bringing in Russian vaccine candidate Sputnik V and plans early and mid-stage trials of the shot in China.

China has also approved three vaccine candidates developed by Sinovac and state-owned Sinopharm for emergency use programme, and Sinopharm is hopeful of its two candidates receiving conditional approval for general public use within this year.

JAPAN

Japan has deals to purchase 120 million doses from Pfizer/BioNTech in the first half of next year, 120 million from AstraZeneca, of which first 30 million will be shipped by March 2021, and 250 million from Novavax.

It is also in talks with Johnson & Johnson and has a deal with Shionogi & Co.

Experts said vaccine makers would need to conduct at least Phase 1-2 trials in Japan before seeking approval.

SOUTH KOREA

It aims to secure vaccines for 10 million people from COVAX and 20 million people from separate deals with drugmakers by the end of this year.

It has the "Optional Purchase" arrangement with COVAX that allows it to select vaccines from specific vaccine makers.

The timing of the procurement and the amount depend on the production schedule of those vaccines, according to health officials.

Inoculation is likely to start in the second quarter of next year to allow more time to observe potential side effects.

INDIA

The head of the Serum Institute of India, which makes the AstraZeneca vaccine, said on Nov 23 the positive late-state trial result of the candidate will allow it to seek emergency use authorisation by year-end, before gaining approval for a full rollout by February or March next year.

India also expects a government-backed vaccine to be launched as early as February, while it is conducting a late-stage trial of Sputnik V.

TAIWAN

Taiwan aims to secure around 15 million doses initially, both via the COVAX scheme and by directly purchasing from vaccine makers, and may buy additional 15 million doses.

The government has said it hopes to begin vaccinations in the first quarter of next year.

INDONESIA

It is one of the countries listed as 92 low and middle income economies, which means it is entitled to have access to vaccines through COVAX for 20% of its population, or approximately 106-107 million doses if each person gets two injections.

Indonesia is testing Sinovac vaccine and preparing to start mass vaccination for medical staff and other frontline workers as early as late January.

VIETNAM

A government official says vaccines from COVAX would cover only 20% of its population and the country is likely to have a chance to secure separate deals soon as overall demand is very high.

BANGLADESH

Bangladesh signed a deal with India's Serum to buy 30 million doses of the AstraZeneca vaccine.

It also expects to receive 68 million doses from GAVI at a subsidized rate, a senior health ministry official said.

-reuters-

World shares mixed as investors eye virus counts, stimulus

Shares were mixed in Europe and Asia on Tuesday, after buying of technology stocks nudged the S&P 500 closer to the record high it set in February before the pandemic crunched the global economy.

Britain’s FTSE 100 slipped 0.1% to 6,122.05, while the DAX in Frankfurt lost 0.2% to 12,892.19. In Paris, the CAC 40 lost 0.3% to 4,957.26. The future for the S&P 500 edged 0.1% lower, to 3,376.30. The future for the Dow industrials lost 0.2% to 27,734.00.

Markets were buoyed by developments in Washington, after Speaker Nancy Pelosi called the House back into session, cutting short the lawmakers’ summer recess for a vote expected Saturday on legislation to prohibit changes in the U.S. Postal Service amid growing concerns that the Trump administration is trying to undermine the agency ahead of the November election.

The proposed package will also include $25 billion to shore up the Postal Service, which is suffering losses. But prospects for additional economic aid for American workers and businesses remain uncertain after talks on a fresh stimulus package stalled.

Investors say it’s crucial that the support comes, particularly after $600 in weekly unemployment benefits and other stimulus from the U.S. government expired.

Without more help for the U.S. economy, analysts say the recovery that investors have been assuming is on the way won’t materialize. And that assumption is a huge reason the stock market is as high as it is.

Still, on Monday the S&P 500 picked up 0.3% to 3,381.99. Earlier in the day, it briefly crossed above its record closing level of 3,386.15, which was set on Feb. 19 before the pandemic shut down businesses worldwide and created the worst recession in decades.

“The markets are in ‘show me the money’ mode, perhaps erring on the side of caution, not holding their breath for an imminent deal in Congress,” Stephen Innes of AxiCorp said in a commentary. “Sadly, this leaves the U.S. real economy waddling and many businesses and millions of consumers getting the short shrift.”

In Asia, South Korea’s Kospi led regional losses, slumping 2.5% to 2,348.24 amid worries over surging coronavirus cases.

South Korean health officials said Tuesday they had found 457 coronavirus cases linked to a huge northern Seoul church led by a bitter critic of the country’s president, driving an alarming rise in infections in the greater capital area.

During a virus briefing, Kwon Jun-wook, director of South Korea’s National Health Institute, said the outbreaks could create a situation comparable to the “miserable scenes of the United States or European countries.”

There’s concern that the virus’s spread could worsen after thousand of protesters, including members of the church and its ultra-right pastor, Jun Kwang-hun, marched in downtown Seoul Saturday despite official pleas to stay home.

Elsewhere, Hong Kong’s Hang Seng index lost 0.2% to 25,367.38. Japan’s Nikkei 225 slipped 0.2% to 23,051.08. Australia’s S&P/ASX 200 gained 0.8% to 6,123.40, while the Shanghai Composite index edged 0.4% higher, to 3,451.09.

Treasury yields moderated a bit, following a big rally for the 10-year yield last week. It dipped to 0.67% from 0.71% late Friday. It had zoomed upward from 0.56% through last week.

Higher yields suggest investors are upgrading their expectations for inflation and the economy. But they can also pull some buyers away from stocks into bonds, hurting stock prices.

Benchmark U.S. crude oil was flat at $42.89 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, picked up 6 cents to $45.43.

In currency dealings, the U.S. dollar weakened to 105.58 Japanese yen from 105.98 yen. The euro rose to $1.1890 from $1.1873.

Gold for delivery in December climbed $17.60 cents to $2,016.30 per ounce.

Associated Press

India coronavirus infections surge past 100,000, deaths top 3,000

Coronavirus cases in India reached 100,000 on Tuesday, matching its number of intensive care beds, and the rate of increase of new infections showed little sign of slowing.

India reported 4,970 new cases over the previous 24 hours, taking its total to 101,139. Deaths rose by 134 to 3,163.

India's number of cases has easily outstripped that of China, where the virus emerged late last year and which has been one of Asia's infection hot spots.

China has reported nearly 83,000 cases but has kept its daily rise in new infections to single digits for the past week.

In contrast, new cases in India have risen by an average of more than 4,000 a day over the past week, according to a Reuters tally based on official data, despite a severe weeks-long lockdown.

India officially extended the lockdown on Sunday to May 31, although several states indicated they would allow businesses to reopen.

Health experts and officials are worried about the strain the epidemic is placing on India's over-stretched and under-funded hospital system.

Dhruva Chaudhry, president of the Indian Society of Critical Care Medicine, told Reuters last month that India probably had only about 100,000 intensive care unit (ICU) beds and 40,000 ventilators.

Chaudhry warned there was not sufficient infrastructure or staff in the country of 1.35 billion people to handle a sharp spike in the number of critical patients.

While not every coronavirus patient needs an ICU bed, health experts worry about surging cases in India, particularly as many believe the official tally falls short of the reality.

India has not provided a detailed breakdown on the condition of people who have been diagnosed with COVID-19, the disease caused by the virus, although authorities have reported that about 37,000 people have recovered.

India's death rate is less than that of some other big countries, at 3%, compared with about 6% for the United States, where some 89,000 people have died, and 14% for Britain. (Editing by Richard Pullin and Jacqueline Wong)

-reuters-

Singapore reports 657 new coronavirus cases, mostly foreign workers

Singapore confirmed 657 new coronavirus infections on Sunday, the vast majority of them foreign workers living in dormitories, taking the city-state's total to 18,205.

The health ministry reported one death, an 86-year-old Singaporean woman, bringing the virus-related death toll in the country to 18.

Among the new cases, ten were Singaporeans or permanent residents, while 626 cases were foreign workers living in dormitories, the ministry said.

Singapore has among the highest number of coronavirus infections in Asia, mainly due to outbreaks in cramped migrant-worker dormitories. It has managed to curb the spread of the disease among locals outside the dormitories.

Singapore will start easing coronavirus restrictions over the next few weeks, authorities said on Saturday. 

(Reporting by Aakriti Bhalla and Ismail Shakil in Bengaluru; Editing by Nick Macfie)

-reuters-

ADB triples COVID-19 aid package to $20 Billion

MANILA — The Asian Development Bank on Monday announced that it is tripling the size of its response to the COVID-19 pandemic to $20 billion.

The ADB said the package will be available to member countries so that they can counter COVID-19's impact on health and the economy.

The multilateral lender said it is also streamlining its operations for quicker and more flexible delivery of assistance.

“Our expanded and comprehensive package of assistance, made possible with the strong support of our Board, will be delivered more quickly, flexibly, and forcefully to the governments and the private sector in our developing member countries to help them address the urgent challenges in tackling the pandemic and economic downturn,” said ADB President Masatsugu Asakawa. 

The private sector will be able to tap $2 billion from the $20 billion package, ADB said.

ADB’s most recent assessment, released on April 3, forecasts regional growth to decline to 2.2 percent this year from 5.2 percent last year because of the effects of the pandemic.

source: news.abs-cbn.com

Asian markets mostly down as virus fears grow

HONG KONG - Asian markets fell Monday following a steep drop on Wall Street as the jubilation from last week's enormous US stimulus package faded and investors returned their attention to the soaring infection and death rate of the coronavirus.

Donald Trump finally signed off the more than $2 trillion pump-priming measures on Friday, but equities -- which enjoyed a rally for much of the week -- ended on a negative note as dealers took profits.

While the disease ravages populations and the global economy grinds to a halt with 40 percent of the planet in lockdown, experts are struggling to get a grip on the scale of the crisis that is forecast to cause a worldwide recession.

And analysts say there are likely more dark days ahead, with Trump abandoning his timetable for life returning to normal in the United States and extending emergency restrictions for another month.

The president said he expected the country to "be well on our way to recovery" by June 1 -- dropping his previous target of mid-April.

Meanwhile, senior US scientist Anthony Fauci issued a tentative prediction that COVID-19 could claim up to 200,000 lives in the US.

Governments and central banks have acted to shore up the global economy, pledging around $5 trillion in stimulus support, with China on Monday joining the party by lowering bank borrowing costs and pumping billions of dollars into financial markets, while Singapore also eased rates.

AxiCorp's Stephen Innes said markets looked like they were "nearing policy fatigue where it becomes less effective, and as the surprise element diminishes, no one cares".

"So, while policy responses in the US and Europe have been spectacular... the coronavirus keeps spreading globally, deepening fears of the economic and financial impact across countries. More market turmoil likely lies ahead."

He also pointed out that with the corporate reporting season approaching "now we are about to enter a vortex of bad earnings, bad economic data, and bankruptcies."

THE BIG UNKNOWN

The downbeat mood weighed on Asian equities, though most pared their morning losses. Tokyo and Hong Kong ended more than one percent down, while Shanghai was off 0.9 percent. Mumbai and Manila lost more than two percent, while Taipei slipped 0.7 percent.

Seoul was flat, while there were also losses in Bangkok and Jakarta.

Singapore slid more than four percent as investors brushed off the city-state's monetary policy easing measures that came days after data showed it was heading for a deep recession.

However, Sydney soared seven percent in its best one-day performance ever following a more than five percent slide Friday. Traders also were buoyed by data pointing to a slowdown in new infections in Australia as well as an $80 billion economic government support package that was unveiled after markets closed but was widely expected.

In early trade, London and Paris each lost around 2.8 percent while Frankfurt was down 1.6 percent.

"The big question for markets is whether the huge stimulus introduced so far across the globe will be enough to help the global economy withstand the economic shock from the COVID-19 containment measures," said National Australia Bank's Rodrigo Catril.

"To answer this question one needs to know the magnitude of the containment measures and for how long they will be implemented. This is the big unknown and it suggests markets are likely to remain volatile until this uncertainty is resolved."

The return to a risk-averse environment on trading floors also sent the dollar back up against higher-yielding currencies with the Mexican peso, Indonesian rupiah and South Korean won losing more than one percent apiece.

The South African rand plunged more than two percent to a record low after Moody's slashed its credit rating on the country to below investment grade.

Crude plunged with the market remaining in turmoil, with the Saudi-Russian price war adding to the impact of battered demand caused by the virus. And there are warnings the commodity, already at near two-decade lows, could sink even further as production remains heightened and storage tanks around the world approach full capacity.

"When the storage capacity is filled, we should probably expect a response from Saudi Arabia, Russia, and other essential oil producers," Innes added, though he warned "the longer their response takes, the higher the risk of another steep decline in oil prices".

source: news.abs-cbn.com

Tourism takes a beating as visitors vanish from Asia's most visited sites

SIEM REAP, Cambodia - As dawn breaks the unmistakable tapered towers of Angkor Wat emerge from the gloom - but for once there are no tourists jostling on its steps to capture Cambodia's most famous sunrise.

Asia's most Instagrammable sites - temples, promenades, shopping streets, museums and mausoleums - are empty, victims of a virus keeping visitors at home.

The usual crowds have evaporated from Sensoji temple in Tokyo to Shanghai's Bund; abandoning the viewpoint at The Peak in Hong Kong and alleviating the pedestrian crush along Sydney Harbour.

Many of the now-vanished visitors are from China - a country whose travelers have completely reshaped the tourist economies of Asia over the last few years, yet where only around 10 percent of the population hold passports.

At the Angkor Wat complex, a 12th century marvel of Khmer architecture whose unique crenellations and reliefs lure millions each year, the high season has brought the lowest number of tourists on record.

Chinese-speaking Cambodian guide Hor Sophea has not taken any tours since late January. Several weeks on, money is getting tight.

"I've never seen so few tourists," said the 36-year, gesturing at the large moat inside the Angkor Wat complex, whose gangways normally bustle with selfie-taking hordes but are now empty.

"I am very worried... I don't know how much longer we can carry on like this."

The Angkor complex in Siem Reap province attracts the bulk of the kingdom's foreign tourists -- which hit a record 6.6 million in 2019, nearly half of whom were from China.

But the outbreak of the coronavirus has withered Chinese tourist arrivals by 90 percent.

Prime Minister Hun Sen has announced tax breaks for hotels and guesthouses in Siem Reap for four months to offset the losses.

But the discovery on Saturday of the first Cambodian with the infection - in Siem Reap - is likely to cement the stay-at-home mentality among many travelers.

The economic impact is also cascading across Asia.

In Bali, piers once bristling with arrivals from China are now decorated with moored boats, while in Tokyo the slump in mainland visitors - as well as South Koreans - is hammering restaurants in tourist areas.

At the Tsukiji fish market, some restaurants say their take is nearly 70 percent down.

"People stopped coming from China during the Lunar New Year... the streets and shops around here are near-empty," Hiroshi Oya, 61, a cook at a Japanese seafood restaurant told AFP.

"Then South Koreans stopped coming too. The tuna shop next to us decided to close temporarily to avoid running costs," he added.

But for those who are inured to the panic gripping the globe and choose to navigate travel restrictions and the morass of quarantine, a rare privilege of empty sites is their reward.

At the Angkor complex, even Ta Prohm -- the 'Tomb Raider Temple' famed for its embrace by giant tree roots and a Hollywood film franchise -- has only a smattering of visitors each day.

"We're very very lucky. Covid-19 has probably done us a favor," Australian tourist Andres Medenis, who came for sunrise at Angkor Wat, told AFP.

"But the economy is going to be really affected by that... so I feel sorry for the local people." 

source: news.abs-cbn.com

Asian banks brace for bad loans spike as virus batters region's economies

Asian banks are bracing for a rough ride in the coming 6 months as the coronavirus epidemic disrupts businesses across the region, likely prompting a spike in bad loans and ultimately dealing a blow to their bottom lines.

Lenders from DBS, Singapore's biggest bank, to HSBC, the largest of 3 currency-issuing banks in Hong Kong, have warned in the past 2 weeks that they will have to set aside additional provisions for loan losses in the first quarter " a risk they say is short term and manageable.

China's biggest banks are not scheduled to update their guidance for 2020 until next month, but credit ratings agency S&P Global Ratings has forecast that the peak questionable loan ratio for China's 285 trillion yuan ($40.5 trillion) banking sector "may almost double" in a worst-case scenario.

"We have also seen it can take years to restore standards in (non-performing loan) recognition, and in the quality of the financial statements, once such standards are loosened," S&P analyst Ryan Tsang said in a research note. "We see a risk that companies may exploit relaxed standards to drag out repayments for years."

HSBC, which counts Hong Kong as its largest market and has made a big bet on growth in the Greater Bay Area, said last week it expects about $600 million of provisions for additional loan losses if the coronavirus outbreak drags on into the second half of the year " its worst-case scenario.

"There will be revenue impact, which will become progressively more acute, if the coronavirus was to continue beyond the next month to six weeks," Ewan Stevenson, the HSBC chief financial officer, said on a conference call on February 18. "We think that the Q1 impact, as we sit here today, is probably rangebound in the order of about $200 million to $500 million relative to our previous planning assumptions."

DBS said it expected credit costs " the amount set aside for bad loans " to increase by 4 to 5 basis points for the year.

Credit ratings agency Moody's Investor Service said on Tuesday that non-performing loan (NPL) ratios at DBS and its Singapore rivals Oversea-Chinese Banking Corporation and United Overseas Bank were likely to rise to 1.6 percent to 1.7 percent this year as a result of economic disruptions from the outbreak, from 1.5 percent at the end of 2019.

Economists have warned China's economic growth, which was already slowing, could dip to as little as 4.4 per ent in 2020 and weigh on the regional economy. China's gross domestic product (GDP) grew at 6.1 percent last year, its slowest pace in 29 years.

Standard Chartered said the coronavirus could potentially affect 42 percent of China's GDP because of its effects on the electronics, automobile, construction, retail, transport, accommodation, catering, real estate and recreation sectors.

"There is ample evidence that the outbreak has taken a heavy toll on these sectors," Wei Li, the bank's senior China economist, said in a research note Friday.

The People's Bank of China and other financial regulators have urged banks to lend more to support struggling businesses, with the central bank saying a "small increase" in NPLs would be "tolerated" to get companies back to work as soon as possible. Banks in Hong Kong and Singapore also have announced measures to support struggling small businesses and retail customers, including interest-only payments on mortgages and commercial loans.

Paul McSheaffrey, a partner at accountancy firm KPMG said banks in Hong Kong were likely to see higher impairment provisions as support measures are rolled out.

"Those loans may not actually be bad. The principal could be repaid, but the fact that it's delayed and that there's a separate agreement with the borrower will cause a perception of higher risk and that will be a higher provision," McSheaffrey said. "We will undoubtedly see some losses and higher losses coming through, particularly in Hong Kong and China."

To be sure, banks' balance sheets in the region are relatively robust. NPL ratios at lenders in China and other economies hit hard by the outbreak, including Hong Kong, Japan, South Korea and Singapore, are some of the healthiest in the region.

China's NPL ratio was 1.8 percent at the end of the first quarter 2019, the latest set of data available, while Hong Kong's NPL ratio was 0.6 percent and Singapore's was 1.3 percent, according to the International Monetary Fund.

By comparison, the NPL ratio in India, the third-largest economy in the region behind China and Japan, was 8.9 percent at the end of last year's first quarter and 0.9 percent in the United States.

The bulk of the coronavirus cases are in mainland China, followed by South Korea and Japan. Singapore has the biggest number of confirmed cases in Southeast Asia with 90 afflictions at last count, more than the 81 confirmed cases and two fatalities in Hong Kong.

A JPMorgan analyst said investors should remain constructive on the financial sector as bank stock valuations remain attractive, balance sheets are robust and the industry is likely to benefit from improving economic conditions in the second half of the year.

"Our base case view is the virus outbreak will not derail the economic activity for more than a few months," JPMorgan analyst Mslav Matejka, said in a research note on Monday.

For the moment, many banks are forecasting the coronavirus outbreak to be a temporary drag on the region's economy, with several citing their experience during the severe acute respiratory syndrome (SARS) outbreak in 2003 as a potential template.

DBS said the outbreak was likely to affect it for one quarter as it did during Sars. "Even if it was double that, it would imply an incremental credit cost of $250 million to $300 million. The general allowances that we have built up over the past year have been robust," Piyush Gupta, the DBS chief executive said, on a conference call on February 13.

Still, the epidemic comes at a challenging time for Asia's banks. Margins are already being pressured by easing monetary policy by central banks in the region and a slowdown in global growth following the US-China trade. Several markets, including Hong Kong and Singapore, also are expected to see the debut of new virtual banks that could further cut into profits this year.

"That downward pressure will continue to bite," Andrew Gilder, EY's Asia-Pacific banking and capital markets leader, said. "I don't see markets in this region going to negative rates, so there's only so low (policymakers) can go. But, the market demands a lower rate on the cost side. If the deposit rates are floored at zero in the region, the borrowing rate for the bank's customers isn't and can continue to go down a bit. That squeezes the margin."


Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.

Chinese support measures buoy world stocks

LONDON -- Global shares were buoyant on Monday as the promise of further policy stimulus from China to counteract the economic hit from a coronavirus outbreak calmed nervous investors.

Trading was light, with US stocks and bond markets shut for a public holiday.

Both the pan-European STOXX 600 index and Germany's DAX reached record highs before paring some gains. The MSCI All-Country World Index, which tracks shares across 47 countries, was flat on the day.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.14 percent to near last week's peak of 558.30, its highest since late January.

The gains were led by China, whose blue-chip index climbed 2.25 percent after the country's central bank lowered a key interest rate and injected more liquidity into the system.

Also whetting risk appetite was an announcement by China's finance minister on Sunday that Beijing would roll out tax and fee cuts.

"Traders are mindful of the fact the Chinese authorities intervened in the financial markets at the beginning of the month, when the domestic stock markets reopened after the Lunar New Year celebrations," said David Madden, market analyst at CMC Markets in London.

"Some dealers hold the view that Beijing will intervene in the markets again should the situation get much worse, which could explain the resilience of equity markets."

Fears about the jolt to the world economy from the coronavirus lingered, though, as the number of reported new cases in China rose to 2,048 as on Sunday from 2,009 the previous day.

"The latest numbers from the Hubei province still suggest that the infection pace is slowing after the sudden jump following the methodology changes last week," Danske Bank said in a research note, highlighting that the number of new cases within China is the lowest since Jan. 23.

Restrictions were tightened further in Hubei over the weekend. Most vehicles were banned from the roads and companies told to stay shut until further notice.

Japan's Nikkei fell 0.7 percent after its economy shrank at the fastest pace in almost 6 years in the December quarter. The slowdown in the world's third-largest economy came amid concern the coronavirus effects will hurt output and tourism, stoking fears Japan may slump into recession.

The coronavirus also led trade-dependent Singapore to downgrade its 2020 economic growth forecast. China's economy is widely expected to slow sharply as well.

BULL RUN

South Korea's KOSPI index ended mostly flat. Australian, Singapore and Malaysian share indexes weakened.

Asia's woes have yet to spread to the United States, though. Wall Street indexes scaled record highs on Friday.

Talk of a middle class tax cut and a proposal to encourage Americans to invest in stocks boosted equity markets late last week, Betashares chief economist David Bassanese said.

Bassanese had misgivings about the plan, saying it reminded him of former US President George Bush encouraging Americans to buy a home during a housing boom.

"It adds to my suspicion that this decade-long bull market could eventually end via a blow-off bubble, driven by central bank persistent low interest rate policy," he said in a note.

Later in the week, flash manufacturing activity data for February are due for the euro zone, the United Kingdom and the United States. They are likely to capture some of the early impact of the viral epidemic.

Action was relatively muted in currency markets, with the dollar up against the yen at 109.90 and the pound at $1.3015. It gained against the euro to $1.0840.

The risk-sensitive Aussie, which is also played as a liquid proxy for Chinese assets, ticked up 0.1 percent to $0.6721.

That left the dollar index flat at 99.135.

In commodities, gold fell 0.22 percent to $1,581.25 an ounce. Brent crude was flat at $57.31 a barrel and US crude added 0.1 percent to $52.09.

source: news.abs-cbn.com

Asian shares ease off 3-week highs as virus fears return

SYDNEY -- Asian shares stepped back from three-week highs on Monday as investors weighed the near-term hit on global growth from a fast-spreading coronavirus outbreak in China, although expectations of further policy stimulus helped stem losses.

Trading is expected to be light as US stocks and bond markets will be shut on Monday for a public holiday.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent to 555.50, easing further from last week's top of 558.30, which was the highest since late January.

Australian shares and South Korea's KOSPI index were each down 0.3 percent.

Japan's Nikkei fell more than 1 percent after data showed the country's economy contracted at an annualized pace of 6.3 percent in October-December, shrinking at the fastest pace since the second quarter of 2014.

The hit to the world's third-largest economy comes amid fresh concerns about weakness in the current quarter, as the coronavirus damages output and tourism, stoking fears Japan may be on the cusp of a recession.

Worryingly, Singapore downgraded its 2020 economic growth forecast due to the coronavirus outbreak, while China's economy is also widely expected to take a sharp hit.

Within China's Hubei province - the epicentre of the coronavirus epidemic, authorities reported 1,933 new cases on Monday, about 5 percent higher than the previous day.

Nationwide figures, due later in the day, are also expected to show an increase from the 2,009 cases last reported.

In a bid to help cushion the jolt from the epidemic, China's Finance Minister announced plans on Sunday to roll out targeted and phased tax and fee cuts to help relieve difficulties for businesses.

"There is also an expectation of fresh monetary policy support this week (from China) with a possible reduction of 5 basis points when the monthly prime loan rate is set," said Ray Attrill, head of forex strategy at National Australia Bank.

BULL RUN

Asia's woes have yet to spread elsewhere, with Wall Street indexes scaling record highs.

E-Mini futures for the S&P500 were up 0.1 percent in early Asian trading on Monday.

Talk of a US middle class tax cut and a proposal to encourage everyday Americans to invest in the equities market boosted share market sentiment late last week, Betashares chief economist David Bassanese said.

Bassanese had misgivings about the plan, saying it reminded him of former US President George Bush encouraging Americans to buy a home during a housing boom.

"It adds to my suspicion that this decade-long bull market could eventually end via a blow-off bubble, driven by central bank persistent low interest rate policy," he said in a note.

Later in the week, flash manufacturing activity data for February are due for the Eurozone, the United Kingdom and the United States which is likely to capture at least some of the early impacts of the viral epidemic.

Action was relatively muted in the currency markets, with the dollar flat against the yen at 109.74. It was unchanged on the pound at $1.3049 and a tad weaker on the euro at $1.0837.

The risk-sensitive Aussie, which is also played as a liquid proxy for the Chinese yuan, was also barely moved at $0.6716.

That left the dollar index at 99.093.

In commodities, gold inched slightly lower to $1,583.15 an ounce.

Oil futures were mixed with Brent crude down 8 cents at $57.24 and US crude up 4 cents at $52.09.

source: news.abs-cbn.com

Traditional markets blamed for virus outbreak are lifeline for Asia's poor

BANGKOK- Millions of poor farmers and workers will lose access to a cheap and easy way to buy and sell fresh food if Asian cities clamp down on traditional wet markets in the wake of the deadly coronavirus outbreak, analysts warned on Friday.

Wet markets, which are a series of stalls that sell fresh vegetables and fruits, live fish, chickens and other meats, are named after the melting of ice used to preserve goods and the washing of floors to clean blood and entrails.

They have come under closer scrutiny in recent weeks after the coronavirus outbreak was linked to a seafood market in Wuhan, China.

That market was shut down, and authorities said they would ban illegal wildlife trade and tighten supervision of wet markets, as a debate raged on social media on whether all wet markets should be closed.

"Wet markets are part of the local culture in Asia, as people believe that meat and produce sold there is fresher and cheaper than in modern retail outlets," said Pavida Pananond, an associate professor of international business at Thammasat University in Bangkok.

Across Asia, governments are keen to modernize their cities increasingly view street vendors and informal markets as a hindrance, and as usurpers of public spaces meant for formal businesses and wealthy residents.

From Bangkok to Manila, authorities are pushing vendors into designated zones and imposing restrictions on informal markets.

The 2002-03 outbreak of Severe Acute Respiratory Syndrome (SARS), which started in China and killed about 800 people, was believed to have emerged from wet markets.

Now the coronavirus, which has led to more than 600 deaths and 30,000 cases, may be used as another reason to tighten controls, although no Southeast Asian nation has declared a shutdown of wet markets.

These traditional markets are a lifeline for millions of small farmers, vendors and small businesses said Pavida, adding that shuttering them would have a significant economic and cultural impact on poorer consumers.

"It will be difficult to completely replace them as they serve consumers at the lower end of purchasing power, not to mention their cultural preference," she said.

SOCIAL SPACES

Singapore has long banned the trade of wild animals and slaughter of poultry in markets, and has now issued advisories for "high standards of hygiene and cleanliness", said a spokesman for the National Environment Agency (NEA), which manages 83 markets across the city-state.

The NEA aims to improve markets "so that they remain social spaces where residents of diverse backgrounds can meet and interact while purchasing affordable household groceries and fresh produce in a clean and hygienic environment," he said.

Wet markets have survived because of culinary traditions that call for freshly slaughtered meat and fish as opposed to frozen meats, said Seshan Ramaswami, an associate professor of marketing education at Singapore Management University.

"I don't think the tradition will collapse because of this outbreak. At best, it might lead to more stringent inspection at the source, or much tighter controls when live animals are being traded," he told the Thomson Reuters Foundation.

Any shutdown of wet markets would have a big socio-economic impact and must be done gradually as it may lead to increased food insecurity, said Masami Takeuchi, a food safety officer at the United Nations' Food and Agriculture Organization.

"Wet markets have been a part of life for many, many centuries. In 2020, they are still an essential part of the culture," she said.

"Obviously there are many challenges in the area of food safety, but with good practices, effective regulation and good inspection schemes, modernization is possible," she said.

source: news.abs-cbn.com

Asian markets rattled as China steps up virus response

HONG KONG - Investor nerves over the spread of a deadly new virus from China rattled Asian equities and oil benchmarks on Thursday, as authorities moved to contain the disease.

The city at the center of the outbreak was placed under effective quarantine, with flights and trains suspended from Wuhan and residents told not to leave "without a special reason".

More than 570 people have been infected with the coronavirus across China and it has since spread to several other Asian countries, as well as the United States. 

The coronavirus has caused alarm because of its similarity to SARS (Severe Acute Respiratory Syndrome), which killed hundreds of people in 2002-2003. 

"China's importance in the overall global supply chain and the fact they are a huge export market for many countries... opens up a more unfavorable global outcome this time around," Stephen Innes, chief market strategist of AxiCorp, said in a note.

Oil prices were hit hard in overnight trade with both major indexes down by more than one percent.

"Given the importance of China for oil demand and having the outbreak falling on the cusp of peak domestic travel season, the timing is particularly damaging," Innes said.

The Wuhan quarantine was announced just a day before the official start of the Lunar New Year holiday, when hundreds of millions of people travel across China.

Hong Kong and Shanghai both dropped 0.9 percent in morning trade while Tokyo was 0.6 percent lower. 

Sydney and Seoul both fell 0.6 percent but Taipei was up 0.2 percent.

Innes said equity markets had so far been measured in their response to the disease, with sentiment buoyed by a strong public health response.

"With global health agencies working much more proactively and transparently to contain the Wuhan pneumonia than they did with the SARS outbreak, the market remains confident that the damaging knock-on effects will be far less harmful," he wrote.

The World Health Organization has so far demurred from declaring a global health emergency -- a rare instrument used only for the worst outbreaks.

China had taken "very, very strong measures" to contain the outbreak, WHO chief Tedros Adhanom Ghebreyesus said on Wednesday.

Euro tariff threat

European stocks were hit Wednesday by US President Donald Trump's renewed threat to impose tariffs on imported cars and a gloomy auto sales forecast.

Trump once again warned of a possible 25 percent punitive tax on European cars if Brussels fails to agree to a trade deal.

Shares in carmakers fell with Daimler dropping more than two percent -- the Mercedes parent company also warning of a likely 2019 earnings shortfall due to massive new charges related to its diesel emissions cheating scandal.

But Wall Street equities finished flat, with indexes barely stirred by either strong local earnings reports or the rising death toll in the coronavirus outbreak.

source: news.abs-cbn.com

New disease spreading in Asia revives SARS fears

PARIS - After Thailand detected its second case of a mysterious SARS-linked virus this week following confirmed cases in China and Japan, here are a few key points about coronavirus.

What is coronavirus?

The UN's health agency says that the outbreak of the disease in the Chinese city of Wuhan is a never-before-seen strain belonging to a broad family of viruses ranging from the common cold to more serious illnesses such as SARS.

According to Arnaud Fontanet, head of Paris' Institut Paster department of epidemiology, the new strain is the seventh known type of coronavirus that humans can contract.

"We think that the source may have been animals sold at market and from there it passed to the human population," he told AFP.

There is so far no indication of human-to-human transmission of the virus.

The outbreak has caused alarm because of the link with SARS (Severe Acute Respiratory Syndrome), which killed 349 people in mainland China and another 299 in Hong Kong in 2002-2003.

Fontanet said the current virus strain was 80 percent genetically identical to SARS.

At least 40 cases have been reported in Wuhan this year, and the outbreak has already claimed two lives.

Time to panic?

Fontanet said that the coronavirus appears to be "weaker" than SARS in its current form, but cautioned that it could mutate into a more virulent strain. 

"We don't have evidence that says this virus is going to mutate, but that's what happened with SARS," he said.

"The virus has only been circulating a short time, so it's too early to say."

As for person-to-person transmission -- a key hallmark of pandemics -- it may also be too early to tell. 

Investigations carried out into the 700 or so people in Wuhan who came into contact with quarantined cases showed no one had passed on the virus, with the possible exception of one woman who claims she never went to the seafood market where the outbreak is thought to have started.

Authorities have pronounced the risk of human transmission "weak" but not impossible.

Fontanet said the fact that the virus had spread beyond China was "starting to make us fear that interhuman transmission is possible."

WHO has not recommended any specific measures for travelers or restrictions on trade with China but believes that new coronavirus cases in other countries are likely. 

The best way of containing any disease outbreak is to rapidly confirm the source, according to Raina MacIntyre, from the University of New South Wales in Sydney.

"Tests are being done on animals in the Wuhan region and they should provide some insight," she said.

Experts said authorities must be vigilant and monitor travelers coming to and from Wuhan for signs of breathing problems.

Lessons learned?

Fontanet said health workers in China had responded admirably by rapidly carrying out testing among patients and linking the cases to the market in question. 

"We've learned some lessons from SARS. We're better armed and more reactive," he said.

Adam Kamradt-Scott, an expert in the spread and control of infectious diseases the University of Sydney, said China had "has been quick to share the genome sequencing of this novel coronavirus.

"This has enabled the identification of this new case in Japan," he said.

Fontanet said that such transparency was different to the start of the SARS epidemic, when China "hid the story for two or three months" at the start of the outbreak.

source: news.abs-cbn.com

Queer K-pop: chorus grows for gay rights in Asia

SEOUL - Wearing bright bow ties and dark dress, a group of South Korean women belt out song after song about the joy and stigma of being gay - part of a growing clamor for LGBT+ rights in Asia.

"Unnie Choir" sang about their struggles at a sold-out concert in the socially conservative nation, where homosexuality remains taboo despite rapid economic advances in recent decades.

It is part of an expanding network of LGBT+ choirs across Asia, which use song to fight discrimination in a region where progress on gay and transgender rights is slow.

"Through singing, we're saying homosexuality exists. We just want to be ourselves," said Chung Ui-jung, the music director and conductor of the 15-strong choir.

"Singing has the power to change," she told the Thomson Reuters Foundation backstage after the concert, attended by some 70 people in a cozy venue in the capital Seoul.

Homosexuality is not illegal in South Korea, which in 2003 ended its classification as "harmful and obscene". There is growing public acceptance of LGBT+ relations and annual gay pride rallies attract thousands.

Yet discrimination remains widespread and gay people suffer hate crimes, according to campaigners. Conservative lawmakers are also pushing to end protections for sexual minority groups.

South Korean President Moon Jae-in, a Catholic widely seen as a liberal, has come under fire for refusing to legalize gay marriage although he also said discrimination against LGBT+ people is not acceptable.

Unnie Choir, founded in 2012, hopes its unconventional method of campaigning can help turn the tide.

SISTERS

Unnie - named after the Korean word for "sister" – meets weekly to sing songs, their own compositions among them.

It holds an annual concert, performs at human rights events, and has been described as the "K-pop for queer" – derived from the term used to describe wildly popular Korean pop music.

Their repertoire ranges from ballads to acapella, hymns to pop songs, sometimes mocking prejudices against gay people.

But they also take on other social issues: cyber bullying and feminism, or why South Korean women prefer to stay single.

"It's my first time to see their performance but they are fun and engaging," said Seo Hee-jeong, a 31-year-old straight woman who said she was drawn to the social-justice messages.

The choirs are seen as taking a gentler stance than many activists on LGBT+ rights, an issue that can ignite hostility in Asia among conservative political or religious groups.

Hence their growing appeal.

There are more than 30 such groups in Asia - in places as diverse as China, India, Japan and Taiwan - according to Proud Voices Asia, an umbrella group for LGBT+ choirs.

LGBT+ rights are mixed across Asia.

India decriminalized gay sex in 2018 and Taiwan last year became the first place in the region to allow same-sex marriage.

But similar drives for gay marriage in China and Japan faced stiff opposition, with social conservatism holding sway.

In South Korea, gay sex between soldiers is a crime under military rules that can result in a two-year prison term - although homosexual acts are not criminalized for civilians.

G-Voice, South Korea's first gay choir, said the groups help LGBT+ people forge a sense of unity, especially in places where open social interactions are difficult.

G-Voice began in 2003 so gay men could share their coming-out stories and support each other through song.

"Coming out is a big decision for many gay men, we collect their stories and turn them into songs. It becomes easier when we're together," said its music director Jun Jae-woo.

BLOOD IS THICKER

Like elsewhere in Asia, the pressure to marry the opposite sex and continue the family blood line is strong in the east Asian nation, prompting many to hide their sexual orientation.

South Korea also has one of the world's top suicide rates and Jun said he has lost gay friends to suicide, calling for legal reforms to protect LGBT+ people from discrimination. The 49-year-old expects anti-LGBT+ sentiment to surge in the run-up to what promises to be a tight legislative election in April, and predicted no major progress on LGBT+ rights.

"We have the conservative forces who are influential, homophobic voices will continue to be loud," said Jun, a doctor who came out in his teens.

Chung from Unnie Choir struck a more optimistic note.

She believed growth in LGBT+ choirs showed wider acceptance, and was confident her group could one day become as popular as other world-famous K-pop icons.

But in a sign of slow progress, Chung - a magazine editor who knew she was attracted to women from a young age – is still not prepared to come out to her parents.

"It is something that is hurtful to them. Maybe one day I will come out to my parents, but I haven't found the courage yet," said the 30-year-old.

Agence France-Presse

Gold, oil surge in Asia as US, Iran exchange threats

SYDNEY - Asian share markets looked to be heading into turbulence on Monday as a flare-up of tensions in the Middle East sent gold to its highest in almost 7 years while oil flirted with 4-month peaks.

The United States detected a heightened state of alert by Iran's missile forces, as President Donald Trump warned the US would strike back, "perhaps in a disproportionate manner," if Iran attacked any American person or target.


Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US killing of a top Iranian military commander and an Iraqi militia leader.

Spot gold surged 1.6 percent to $1,575.37 per ounce in jittery trade and reached its highest since April 2013.

Oil prices added to their gains on fears any conflict in the region could disrupt global supplies.

Brent crude futures rose $1.05 to $69.65 a barrel, while US crude climbed 94 cents to $63.99.

"The risk of further escalation has clearly gone up - given the direct attack on Iran, Iran's threat of retaliation and Trump's desire to look tough - posing the threat of higher oil prices," said Shane Oliver, chief economist at AMP Capital.

"Historically though oil prices need to double to pose a severe threat to global growth and we are long way from that."

MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.16 percent though most major indices were yet to open. Futures for Japan's Nikkei pointed to an opening fall of around 500 points.

E-Mini futures for the S&P 500 fell 0.4 percent in very choppy trade.

Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.795 percent having fallen 10 basis points on Friday. Treasury futures gained 7 ticks.

In currency markets, the Japanese yen remained the favored safe harbor courtesy of Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a true global crisis, pushing the yen higher.

Early Monday, the dollar had edged down to a 3-month trough of 107.81 yen, and risked a pullback all the way to 107.00. The euro likewise eased to 120.45 yen having hit a 3-week low.

The dollar was steadier against the other majors, with the euro being little changed at $1.1166. Against a basket of currencies, the dollar was holding at 96.852.

source: news.abs-cbn.com

Greeting the Pope

Catholic faithful greet Pope Francis as he visits St. Peter's Parish in Bangkok, Thailand on Friday. Pope Francis met with priests, seminarians and catechists before attending the Federation of Asian Bishops' Conferences (FABC) at the Blessed Nicholas Boonkerd Kitbamrung Shrine.

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Pope Francis meets Thailand’s Buddhist supreme patriarch

Pope Francis meets with Buddhist supreme patriarch Somdet Phra Maha Muniwong, at the Wat Ratchabophit Buddhist temple in Bangkok, Thailand on Thursday. Pope Francis is currently in Thailand as part of his 32nd Apostolic Journey in Asia to promote interreligious dialogue in the region.

source: news.abs-cbn.com

Groups call for climate justice, urgent action on global climate crisis

Thousands of students gather at Berlin's Brandenburg gate to protest for climate protection. Meanwhile, in Asia, the global-climate strikes began in earnest, with groups calling for more concrete action from governments and the private sector. As Bruce Rodriguez reports, more companies in the Philippines are also taking part in sustainable initiatives.

source: news.abs-cbn.com

Asian shares rise on conciliatory trade tone

SYDNEY -- Asian shares rose on Friday as China struck a hopeful tone on trade with the United States but continued fears about a global growth slowdown, or even a recession, capped sharp rallies.

Investors were focused on a string of economic releases due over the weekend including China's official manufacturing survey which would provide a good gauge of the real impact from the Sino-US trade war.

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.6 percent but stayed near a recent 7-1/2 month trough. For the week, it is still set for a small weekly loss.

Japan's Nikkei jumped 1 percent while South Korea's KOSPI index gained 1.5 percent and Australian shares rose 0.9 percent.

Overnight, Wall Street added more than 1 percent after China's commerce ministry said Beijing and Washington were discussing the next round of face-to-face talks scheduled for September.

The comments spurred hopes for progress in the talks and boosted the Chinese yuan, which snapped a 10-day losing streak.

Stock analysts were more circumspect though.

"It's really hard to say the US-China trade backdrop changed dramatically in the last 12 hours – the Sept 1 tariffs are still going into effect and there are further hikes on the calendar," JPMorgan analysts wrote to clients in a note.

US President Donald Trump said some discussions were taking place on Thursday, with more talks scheduled.

China's commerce ministry also said a September round of meetings was being discussed by the two sides, but added it was important for Washington to cancel a tariff increase.

"In reality, the headlines are extremely innocuous and don't differ from what China has said in the past but they crossed during a dead zone of liquidity and attendance and as a result are having an outsized influence on trading," JPMorgan said.

Trade tensions have dominated market sentiment for much of this year with wild swings in world stocks as rhetoric between the United States and China fluctuates from conciliatory to combative.

Last week, China unveiled tit-for-tat tariffs on $75 billion of US goods. In response, U.S. President Donald Trump said he would tack an additional 5 percent duty onto $550 billion of Chinese goods.

The volatile nature of the negotiations have kept many analysts cautious.

"The recent escalation of the tariff war provides no hopes of a near-term trade deal," ING's Asia economist Prakash Sakpal wrote.

"As such, we are in for a long stretch of slow growth and increasingly challenging policy environment, as some central bankers have warned."

Even so, US Treasury yields rose overnight with the benchmark 10-year Treasury climbing to 1.535 percent from a 3-year low of 1.443 percent touched earlier this week.

Among currencies, the dollar was a tad weaker at 98.460 against a basket of six major currencies. It was a shade lower against the Japanese yen at 106.41 after gains overnight while the euro was flat at $1.1053.

Sterling held at $1.218 ahead of a crucial few days for parliament next week which could even result in a no-confidence motion and a new election.

In commodities, spot gold came off recent highs to trade at $1,525.6 an ounce. Silver also eased to $18.16 an ounce after hitting its highest level in more than two years.

US crude slipped 6 cents, or 0.1 percent, to $56.65 a barrel while Brent was down 10 cents, or 0.2 percent, at $60.98 a barrel.

source: news.abs-cbn.com