China stocks slip on lingering virus worries

Shares in Shanghai ended a three-day winning streak on Wednesday as worries persisted over the spreading coronavirus epidemic, which has claimed more than 2,000 lives and weighed on business activity in the country.

** At the close, the Shanghai Composite index was down 0.3% at 2,975.40. The index rose in the previous three trading days. The blue-chip CSI300 index was down 0.2%.

** CSI300's financial sector sub-index rose 0.11%, the consumer staples sector was up 1.43%, the real estate index fell 0.01% and the healthcare sub-index was down 1.59%.

** The smaller Shenzhen index ended down 0.55% and the start-up board ChiNext Composite index was weaker by 1.452%.

** The death toll from the coronavirus outbreak in mainland China crossed 2,000 on Wednesday although the number of new cases fell for a second straight day, as authorities tightened already severe containment measures in the worst-hit city of Wuhan.

** The world's second-largest economy is struggling to get its manufacturing sector back on track after imposing severe travel restrictions to contain a virus that emerged in the central province of Hubei late last year.

** Analysts at Nomura estimated 70% of workers who went home for the extended holidays have yet to return to cities to work, and said the business resumption rate, based on capacity utilization, was less than 40% on average.

** China will cut some pension contributions and insurance fees to help companies cope with the coronavirus, while firms in Hubei are exempted from paying pensions, jobless and work-injury insurance until June.

** The stock market is underpinned by policy support and deregulation such as tweaks to refinancing rules, said Zhang Chi, analyst at Western Securities. Policymakers have implemented a raft of measures to support the economy amid the virus outbreak.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.5%, while Japan's Nikkei index closed up 0.9%.

** At 0725 GMT, the yuan was flat at 6.9965 per U.S. dollar. ** So far this year, the Shanghai stock index is down 2.5% and the CSI300 has fallen 1.2%. Shanghai stocks are pretty much flat so far this month.

** About 31.51 billion shares were traded on the Shanghai exchange. The volume in the previous trading session was 31.17 billion.

** The Shanghai stock index is below its 50-day moving average and above its 200-day moving average.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)