Oil recovery fuels equities rally but nerves persist after Black Monday

A bounce in the price of oil helped fuel a rally in equities in Asia on Tuesday, a day after global markets suffered their biggest losses in more than a decade, though observers remain on edge over the coronavirus outbreak.

Global stock markets capitulated on what has become known as “Black Monday”, with the Dow on Wall Street plunging more than 2,000 points, triggering an emergency break in early trade.

Asia had suffered a meltdown as the deadly disease continues to infect thousands and shows no sign of abating.

But there was relief on Tuesday as oil prices jumped up to eight per cent after plunging by a third the previous day, in their worst session since the 1991 Gulf War.