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Nov. 16, 2020, 11:59 p.m. EST

Asian markets inch higher on vaccine hopes

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By Associated Press

TOKYO — Asian shares rose Tuesday, after the Dow Jones Industrial Average hit a record high on optimism that a vaccine may soon control the coronavirus and the economic destruction it’s caused.

Moderna /zigman2/quotes/205619834/composite MRNA +6.84% said its COVID-19 vaccine appears to be 94.5% effective, according to preliminary data. It’s the second time this month that a company unveiled such encouraging numbers about a vaccine, boosting hopes that the global economy can return to some semblance of normal next year.

Japan’s benchmark Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK +0.0067% rose 0.2% to 25,968.22 in morning trading, after momentarily reaching a 29-year high of above 26,000.

Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.03% gained 0.1% while South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.0069% added 0.3%. Hong Kong’s Hang Seng /zigman2/quotes/210598030/delayed HK:HSI +0.47% inched 0.1% higher and the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +1.49% was slightly lower. Benchmark indexes in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 +0.61% , Singapore /zigman2/quotes/210597985/delayed SG:STI +0.25% , Malaysia /zigman2/quotes/210598052/delayed MY:FBMKLCI -0.50% and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX -0.55% all gained.

“The vaccine driven fervor had continued into the fresh week with even better trial results further inspiring markets to anticipate a virus-free reality in the not too far away future,” said Jingyi Pan, senior market strategist with IG in Singapore. “Asia-Pacific markets continue to bask under the vaccine glow.”

Even as a fresh surge of COVID-19 infections hit Japan, the economy marked a rebound in the third quarter. The recovery is still not at pre-pandemic levels, but such signs are raising optimism about things returning to business as normal in the world’s third-largest economy.

Fitch Solutions Country Risk and Industry Research revised its growth projection for Japan this year to a more moderate contraction of 6.3%, from an earlier forecast for an 8.8% contraction. For 2021, Fitch projects a return to 2.7% growth in 2021, which is better than its earlier forecast for 2.1% growth.

“In 2021, we believe that the holding of the summer Olympics as well as the likely availability of a COVID-19 vaccine could likely lead to a sharper upsurge in domestic demand, driving our forecast revision,” it said.

The Tokyo Games have been postponed a year to the summer of 2021.

On Wall Street, stocks of companies that would benefit most from an economy busting out of its forced hibernation, such as airlines, movie theaters and banks, led Monday’s rally. The trend was basically echoed in Asia.

At the same time, pandemic-winning stocks that benefited from lockdown orders like Amazon /zigman2/quotes/210331248/composite AMZN +0.60% and Zoom Video Communications /zigman2/quotes/211319643/composite ZM -0.73% lagged as they no longer looked like the only safe bets to play.

The Dow /zigman2/quotes/210598065/realtime DJIA +0.48% jumped 470.63 points, or 1.6%, to 29,950.44. It surpassed its prior closing record of 29,551.42, set in February before pandemic panic sent stocks plunging.

The S&P 500 /zigman2/quotes/210599714/realtime SPX +0.36% , which matters more to the performance of most 401(k) accounts, added to its own record set on Friday. It rose 41.76, or 1.2%, to 3,626.91. The Nasdaq composite /zigman2/quotes/210598365/realtime COMP +0.10% gained 94.84, or 0.8%, to 11,924.13. It lagged the rest of the market amid lessened interest for tech stocks.

Risks remain for global markets. Even if one or both vaccines are finally approved, it’s still uncertain when they could be widely distributed.

The pandemic is continuing to worsen, with rising coronavirus counts across the United States and Europe pushing governments to bring back varying degrees of  restrictions  on businesses. Some areas of the U.S. economy have been slowing, particularly after big financial-support programs from Congress expired.

“The vaccine could help people breathe a sigh of relief, but the devil is in the details,” said Gene Goldman, chief investment officer at Cetera Financial Group, referring to the need for more complete data and eventual distribution plans.

In energy trading, benchmark U.S. crude oil climbed 9 cents to $41.434 per barrel amid hopes that a healthier economy would burn more fuel. Brent crude , the international standard, rose $1.04 to $43.82 per barrel.

In currency trading, the dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.6498% declined to 104.49 Japanese yen from 104.90 yen.

/zigman2/quotes/205619834/composite
US : U.S.: Nasdaq
$ 170.81
+10.94 +6.84%
Volume: 19.04M
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$63.98 billion
Rev. per Employee
$617,996
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/zigman2/quotes/210597971/delayed
JP : Nikkei
29,685.37
+2.00 +0.0067%
Volume: 0.00
April 19, 2021 3:15p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,065.60
+2.10 +0.03%
Volume: 473,521
April 19, 2021 5:11p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
3,198.84
+0.22 +0.0069%
Volume: 1.06M
April 19, 2021 3:32p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
29,106.15
+136.44 +0.47%
Volume: 2.02M
April 19, 2021 4:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,477.55
+50.93 +1.49%
Volume: 30.27B
April 19, 2021 3:01p
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/zigman2/quotes/210597977/delayed
TW : Taiwan Stock Exchange
17,263.28
+104.47 +0.61%
Volume: 0.00
April 19, 2021 1:33p
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/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
3,209.72
+7.96 +0.25%
Volume: 0.00
April 19, 2021 5:20p
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/zigman2/quotes/210598052/delayed
MY : Malaysia
1,600.29
-8.09 -0.50%
Volume: 0.00
April 19, 2021 5:05p
loading...
/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
6,052.54
-33.72 -0.55%
Volume: 0.00
April 19, 2021 3:00p
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,399.44
+20.35 +0.60%
Volume: 3.19M
April 16, 2021 4:00p
P/E Ratio
81.42
Dividend Yield
N/A
Market Cap
$1701.59 billion
Rev. per Employee
$297,430
loading...
/zigman2/quotes/211319643/composite
US : U.S.: Nasdaq
$ 329.95
-2.43 -0.73%
Volume: 2.48M
April 16, 2021 4:00p
P/E Ratio
146.91
Dividend Yield
N/A
Market Cap
$97.62 billion
Rev. per Employee
$599,586
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,200.67
+164.68 +0.48%
Volume: 348.18M
April 16, 2021 5:15p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,185.47
+15.05 +0.36%
Volume: 2.21B
April 16, 2021 5:15p
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
14,052.34
+13.58 +0.10%
Volume: 4.03M
April 16, 2021 5:16p
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
108.1030
-0.7070 -0.6498%
Volume: 0.0000
April 19, 2021 8:44a
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