China stocks rebound as Asian markets rally and investors track virus

Asian markets rallied on Tuesday with Chinese stocks bouncing back as bargain-buyers stepped in after the previous day's rout.

The Shanghai Composite closed up 1.3 percent, while the blue-chip CSI300 rebounded 2.6 percent after a near 8-percent slide on Monday. Hong Kong's Hang Seng advanced 1.2 percent, a day after data showed the city's economy contracted last year for the first time since 2009, but at a slightly slower rate than feared.

"At the start to the week there was a fear that when China reopens there would be further disruption to the markets ... (but) investors are tentatively going back into risk," said Bank of Tokyo Mitsubishi strategist Lee Hardman.

**Analysts: **

8% A-share market plunge short-term panic reaction to conronavirus outbreak

Markets were also encouraged as China's central bank pumped

400 billion yuan

(about 57 billion U.S. dollars) into the banking system on Tuesday, after injecting 1.2 trillion yuan into the system via reverse repos on Monday.

MSCI's main world index rose by 0.4 percent, led by gains in South Korea and Australia, the biggest leap in commodity-focused stocks in over three months.

Singapore, Seoul, Mumbai, Manila and Taipei all surged between 1.3 and 2 percent, while Sydney put on 0.4 percent, and Jakarta added 0.7 percent. Tokyo finished 0.5 percent higher.

The buying sentiment extended to the oil markets, where both main contracts rose after plunging on Monday amid worries about the effect on demand for the commodity in the world's biggest consumer.

U.S. markets were expected to follow suit, with major stock futures trading up around 1 percent even after disappointing earnings results from Google parent Alphabet.

(With inputs from AFP, Reuters)