Australia stocks make surprise rally despite coronavirus fears

The Australian stock market trimmed a week of heavy loses Friday, ending up four percent after a last-gasp rally.

The ASX 200 closed up 4.42% at 5539.3 with the healthcare and energy sectors leading the charge.

The late rally was a rare sign of optimism on global bourses, and capped a wild week which saw repeated selloffs amid panic over the coronavirus.

Australia's main index was at one point down eight percent.

It is still off around 23 percent since a high on February 20.

While some pointed to bargain hunting, investor Scott Phillips said traders were behaving like "the proverbial headless chook."

Dealers, he tweeted, were "too scared to hold, in case things get worse" and "too scared not to buy, in case things get better."

Forager Funds' Steve Johnson described the day's trade as "completely and utterly nuts."

Stocks began rising shortly before Prime Minister Scott Morrison announced that gatherings of more than 500 people would be halted from Monday and Australians were advised not to travel overseas.

Australia has seen 184 cases of COVID-19, a number that is expected to continue to rise.