Global manufacturing contracted in February by the most since 2009 as the coronavirus severely disrupted demand, trade and supply chains. The JPMorgan Global Manufacturing PMI fell 3.2 points to 47.2, snapping a three-month streak of expansionary readings, according to a report released Monday. Production plunged the most in almost two decades while the measure of new export orders also fell to the lowest since 2009.

Stocks in Asia looked set to advance after U.S. equities surged the most in 14 months as investors gained confidence that policy makers would act in concert to offset any impact from the spreading coronavirus. Group of Seven finance ministers and central bankers will hold a teleconference Tuesday to discuss how to respond to the outbreak. Futures pointed higher in Japan and Sydney. The S&P 500 rallied 4.6%, the most since December 2018, with monetary policy makers from Japan to England joining the Federal Reserve in promising to take action to support their economies if needed. The yen slid and the offshore yuan climbed. Ten-year Treasury yields pared an early slide to trade little changed, while 30-year rates rose. Oil rallied on expectations that the OPEC+ alliance will deepen output cuts.

Apple has agreed to pay up to US$500 million to settle litigation accusing it of quietly slowing down older iPhones as it launched new models, to induce owners to buy replacement phones or batteries. The preliminary proposed class-action settlement was disclosed on Friday night and requires approval by US District Judge Edward Davila in San Jose, California. It calls for Apple to pay consumers US$25 per iPhone, which may be adjusted up or down depending on how many iPhones are eligible, with a minimum total payout of US$310 million.

Traders on Monday piled into bets the US Federal Reserve will deliver a big dose of stimulus starting this month amid mounting concern over the economic impact from the coronavirus and indications that global central banks are readying a monetary rescue. Pricing in futures tied to the Fed's policy support a 100 per cent chance of a half percentage-point rate cut at the Fed's March meeting, and another half a percentage point-cut by July.

British Airways and Ireland's Ryanair on Monday announced major flight cancellations particularly to Italy, in response to the worsening novel coronavirus outbreak, while Germany's Lufthansa extended cutbacks. BA, which is owned by International Airlines Group, said it would cancel some 216 flights to various countries as a result of weaker demand sapped by the spread of Covid-19 disease. The International Civil Aviation Organization says the virus outbreak - which has hit Italy the hardest in Europe - could mean a US$4.0-US$5.0 billion drop in worldwide airline revenue.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR