January 24, 2020 / 1:27 AM / a month ago

Global stocks steady as caution on China virus continues; euro hits seven-week low after ECB

TOKYO (Reuters) - Stocks made a barely positive start in early Asian trade on Friday after the world’s health body called it a little too early to declare a coronavirus outbreak a global emergency.

FILE PHOTO: Investors look at screens showing stock information at a brokerage house in Shanghai, China January 16, 2020. REUTERS/Aly Song/File Photo

But worries over rapid spread of the deadly virus kept investors on guard as millions of Chinese travel during the Lunar New Year holiday period.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose a marginal 0.1%, while Japan's Nikkei .N225 stood flat and Australian stocks added 0.4%.

Trade in Asia is already slowing down for the Lunar New Year holiday, with financial markets in China, Taiwan and South Korea closed on Friday.

Key indices on Wall Street bounced from lows after the World Health Organisation (WHO) said the latest coronavirus did not yet constitute a global public health emergency.

The Nasdaq Composite .IXIC rose 0.2% to a record closing high, while the S&P 500 .SPX added 0.1% and the Dow Jones Industrial Average .DJI eased 0.1%.

The WHO called a new coronavirus that has killed 18 people in China and infected around 650 globally “an emergency in China” on Thursday, but stopped short of declaring the epidemic of international concern.

“Investors are worried that the outbreak of coronavirus will dampen consumption in China when the Chinese economy has been already cooling down,” said Yasuo Sakuma, chief investment officer at Libra Investments.

In the currency market, the concerns about the virus supported the yen.

The Japanese currency traded at 109.53 yen per dollar JPY=, having risen to a two-week high of 109.26 on Thursday.

The euro EUR= fell to a seven-week low versus the dollar of $1.1036 overnight after the European Central Bank left its policy rates unchanged but President Christine Lagarde struck a slightly dovish tone than some had expected.

Coronavirus fears continued to weigh on commodity prices.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were up a marginal 0.05% at $55.61 a barrel, after hitting $54.77 in the previous session, the lowest level since Nov. 20.

Reporting by Tomo Uetake; Editing by Christopher Cushing

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