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Asian markets were gaining in early trading on Monday despite fears of the spreading coronavirus that dragged U.S. markets through their worst week since the financial crisis.

The Shanghai SE Composite Index was up more than 2% while Hong Kong’s Hang Seng Index floated up around 0.7%. Other Asia markets were mixed. Japan’s Nikkei 225 was up about 1% while the Australia ASX All Ordinaries was down more than 2%.

After a bullish February despite the spreading epidemic, mainland Chinese markets finally dropped sharply last week. On Saturday, Beijing added what some thought would be more bad news for domestic shares, releasing its worst monthly manufacturing data on record, as the epidemic drove production in the country to a standstill.

The Purchasing Managers’ Index (PMI)—which measures factory activity—came in at 35.7, far below analysts’ estimates and even lower than during the 2008-2009 financial crisis. A reading below 50 denotes contraction, and most analysts had forecasted a decline in the realm of 45 or 46.

The non-manufacturing services-sector PMI also came in a record low—which further surprised investors, as it had remained stable even during the financial crisis. The independently produced Caixin China General Manufacturing PMI, which focuses more on smaller, private firms, came in at 40.3 for February, also showing contraction worse than analysts’ predictions.

Chinese markets may be buoyed by expectations of government action at home and abroad.

On Sunday, China’s banking regulator and the central bank jointly announced that small- and medium-sized enterprises with loan payments due before June 30 would be eligible to delay their debt repayments. In Hubei province, the center of the outbreak, even larger firms are eligible. In addition to loan relief, policymakers have cut interest rates and taxes, and injected billions of yuan into the banking system since COVID-19 swelled in the country in January.

In the U.S., Goldman Sachs said it expects a 50 basis-point rate-cut from the Federal Reserve. U.S. stock market futures rallied from steep initial losses late Sunday, suggesting a pause to the selloff when trading begins Monday.

By the end of the weekend, global deaths from the virus had surpassed 3,000, and several additional countries, including the U.S. and Australia, had reported their first fatalities.

Tanner Brown is a contributor to Barron’s and MarketWatch and producer of the Caixin-Sinica Business Brief podcast.