Australian labor market seems to be stabilizing, businesses expect to increase staff in months ahead
The rise in inequality is attributed to the shrinking wages of low-income households, and a cut down in temporary positions
Singaporean headline inflation falls in April, unlikely to return to positive territory before end of 2020
China’s financial markets likely to stabilize over coming sessions, coronavirus cure rate seen to rise: Scotiabank
China’s financial markets to stabilize in the coming sessions on hopes for an improving coronavirus situation as China's central government has taken greater control over containing the novel coronavirus outbreak, according to the latest research report from Scotiabank.
Further, the cure rate is expected to keep rising in the coming weeks, particularly if considering more efficient treatment with some new medicines and two new hospitals built in Wuhan city.
China’s stock prices and government bond yields tumbled on Monday when onshore markets reopened after the extended Chinese New Year holiday, largely due to ongoing concerns over the 2019-nCoV outbreak. However, overseas investors purchased a net USD1.936 billion and USD655 million of Shanghai and Shenzhen shares respectively on Monday, showing their persistent interest in CNY-denominated assets.
The PBoC rolled over CNY 1,050bn of maturing reverse repos with additional CNY 150bn of liquidity injection on Monday in order to aid financial stability in the nation’s coronavirus-hit financial markets, lowering 7-day and 14-day reverse repo rate by 10 bp each to 2.40 percent and 2.55 percent respectively.
"We believe the PBoC will deliver a 10 bp reduction in the 1-year LPR on February 20 to alleviate the economic impact of the novel coronavirus outbreak and spread," Scotiabank commented in the report.
Bloomberg reported on Monday that Chinese officials are hoping the US will agree to some flexibility on pledges in their phase-one trade deal as Beijing tries to contain a health crisis that threatens to slow domestic growth with repercussions around the world, citing people familiar with the situation.
As known, the phase-one trade deal signed on 15 January is due to take effect within 30 days. According to Article 7.6 of the Agreement, the US and China shall consult with each other "in the event that a natural disaster or other unforeseeable event" delays either from timely complying with its obligations.
It will certainly ease market concerns over China’s economic growth in the first quarter if some flexibility is agreed to, the report added.
China’s Politburo Standing Committee on Monday held a second special meeting on the prevention and control of pneumonia epidemic caused by the novel coronavirus, after President Xi Jinping chaired the first one on January 25.
President Xi said those who disobey the unified command or shirk off responsibilities will be punished. "The outbreak is a major test of China's system and capacity for governance, and we must sum up the experience and draw a lesson from it," according to the post-meeting statement.
Meanwhile, the Politburo holding two special meetings within 10 days will further improve the efficiency of the fight against the novel coronavirus.