Asian shares bounce after Wall St dive, recession warning

BANGKOK (AP) — Shares reversed early losses in Asia on Tuesday after the U.S. stock market plunged to its worst day in more than three decades and huge swaths of many economies came to a standstill, with businesses and travel shut down due to the virus outbreak.

Tokyo's Nikkei 225 climbed 0.8% at one point but was up only 0.2% by early afternoon. The Hang Seng in Hong Kong advanced 1.1%. Shares also rose in Thailand, India and Australia, but fell in other regional markets.

“Market experts actually orginally predicted at least a one thousand point crash for the Hang Seng index. But surprise, surprise, there was bottom fishing. Investors went bargaining hunting,” said Francis Lun, a stock analyst in Hong Kong.

Monday's 12% drop for the S&P 500, its worst day in more than 30 years, came as voices from Wall Street to the White House said the coronavirus may be dragging the economy into a recession.

The rebound in Asia followed news that the Trump administration plans strong support for airlines stricken by the outbreak and is pushing the Senate to enact a massive stimulus package to alleviate losses for businesses and individuals affected by the outbreak, which has infected more than 182,000 people worldwide, 4,661 in the United States.

Oil prices also rose early Tuesday, with U.S. benchmark crude up 3.5%, or $1.00 to $29.70 per barrel in electronic trading on the New York Mercantile Exchange. It plunged $3.03 on Monday. Brent crude, the international standard, picked up 1.6%, or 48 cents, to $30.53 per barrel.

Analysts said bargain hunters appeared to be buying to help fill government oil reserves and on hopes that China's economy will get a boost from massive stimulus yet to be announced.

The Nikkei 225 in Tokyo rose to 17,122.75 while Hong Kong's benchmark...