Most Southeast Asian stock markets closed lower on Thursday as a sharp rise in new coronavirus deaths and infections shattered hopes that the virus outbreak had peaked.

Chinese province Hubei, which is at the epicentre of the coronavirus outbreak, reported a record 242 deaths and thousands more cases on Thursday under a new diagnostic method, suggesting a much bigger crisis facing China and the world.

That took total deaths in China from the virus to 1,367, up 254 from the previous day, the National Health Commission said.

The surge in the number of infections comes a day after global markets had rallied after China's senior medical advisor said the epidemic would be over by April. The latest update on the coronavirus situation has "shaken Asia's confidence," said Jeffrey Halley, market analyst at OANDA, in a note.

"The argument that it was a one-off adjustment versus the integrity of China's data collection has left Asian stock markets in somewhat of a limbo," Halley said.

Leading declines in markets, Indonesian shares closed 0.7% lower, weighed by heavyweight telecoms player Telekomunikasi Indonesia, down 2.6%. The Thai Benchmark closed down 0.5%, pressured by energy stocks. Petroleum producer PTT Exploration and Production Pcl fell 2%, the most on the sector. Adding to the downbeat mood, a Thai central bank official said on Thursday that the country's economy may grow by less than 2% this year and exports are likely to contract, mainly from the impact of the virus outbreak.

Malaysian equities dropped for a second straight day, as heavyweight financials such as Hong Leong Bank fell 1.9% and Hong Leong Financial Group slipped 0.6%.

Shares in Vietnam and Singapore were little changed throughout the session, while the Philippines closed 0.3% higher.