Asian stocks trade mixed, Shanghai Composite recovers from 2020 low

• Asian stocks are trading mixed as the S&P 500 futures report gains. 
• Chinese stocks have erased loses and now trade about 0.5% lower on the day. 

Asian stocks are trading mixed with investors assessing the economic impact of coronavirus. 

At press time, Japan's Nikkei index is reporting a 0.54% gain. Stocks in Australia, New Zealand, and South Korea are also flashing green. 

Meanwhile, the Shanghai Composite index is reporting losses for the second day. The index is currently trading at 3034, representing a 0.56% drop on the day, having hit a 2019 low of 3006 earlier today. 

The US stocks tracked the Asian and European equities lower on Tuesday on concerns China's coronavirus could spread across the world. The weak tone in the equities boded well for safe havens like gold, yen and Swiss franc. 

The futures on the S&P 500, however, are now pointing to risk reset with a 0.27% gain. 

As a result, currency traders are offering the anti-risk yen. The USD/JPY pair has moved back above 110.00, having hit a low of 109.83 in early Asia.

It won't be a surprise if the equities erase Tuesday's losses, as fund managers have priced out recession risks and boosted their equity allocations to a net 32% overweight – the highest in 17 months, according to Bank of America Merrill Lynch’s (BoAML) January survey of global fund managers shows.