HONG KONG Asian markets fell Friday after a weeklong rally as investors take profits and assess developments in China’s deadly coronavirus crisis. Strong US data, Chinese financial support and a broadly healthy earnings season have provided a much-needed boost to equities after last week’s sell-off, while there is a sense that the economic impact of the outbreak globally could be limited. China’s decision Thursday to halve tariffs on $75 billion of US goods as part of their trade detente has also cheered the mood. Observers say the virus, which has killed more than 600 people and infected 31,000, will batter Chinese growth in the first quarter but it could rebound later in the year, as it did after SARS. “If the pattern of the SARS impacts are a guide, there is the potential for the Chinese economy to rebound with an above-potential growth rate once the outbreak subsides,” said T. Rowe Price analyst Chris Kushlis. “In 2003, China’s growth rate climbed to 15.5 percent in the third quarter as pentup demand saw consumption rebound as the SARS outbreak waned. A similar rebound following the coronavirus could help keep the longer?term track of the Chinese economy on a relatively even keel.” Heading into the weekend, dealers were taking a step back after the week’s strong gains across the world, which has seen all three main indexes on Wall Street chalk up record highs. Hong Kong, which has climbed around 4.5 percent this week, dipped 0.5 percent in the morning session, while Tokyo went into the break 0.1 percent down.—AFP
