Asian markets bounce back as BoJ pledges support

Share prices in Asia bounced back Monday from last week’s retreat, with mainland Chinese indexes gaining more than 3% as data showed progress in restoring factory output after weeks of disruptions from the viral outbreak.

Stocks have been swooning as investors fret the coronavirus outbreak will derail the global economy. But in those declines, some see opportunities to buy.

Japan’s Nikkei 225 index NIK, +0.95%   recovered from early losses, closing up 0.9%, gaining 1% to 21,345.54 after the Bank of Japan promised to step in to support the economy. The Shanghai Composite index SHCOMP, +3.15%  rose 3.1%.

The benchmark for the smaller exchange, in Shenzhen 399106, +3.77%, jumped 3.8%. South Korea’s Kospi 180721, +0.78%   climbed 0.8% and the Hang Seng HSI, +0.62%   in Hong Kong jumped 0.6%.

Bank of Japan Gov. Haruhiko Kuroda issued a statement Monday, after an early plunge in share prices, saying the central bank “will closely monitor future developments, and will strive to provide ample liquidity and ensure stability in financial markets through appropriate market operations and asset purchases.”