Asian stocks rose on Tuesday after the Dow Jones Industrial Average hit a record high on optimism, a vaccine that could soon control the coronavirus and the economic devastation it causes.
According to modern data, the COVID-19 vaccine appears to be 94.5% effective. This is the second time in the month that a company has unveiled such encouraging numbers about the vaccine, which is expected to cause the global economy to return somewhat below normal next year.
Japan’s benchmark rose 0.2% to 25,968.22 in morning trade, reaching a 29-year high above 26,000.
Australia’s S&P / ASX 200 rose 0.4% to 6,512.00. South Korea’s Kospi rose 0.3% to 2,550.76. Hong Kong’s Hang Seng gained 0.1% to close at 26,415.34, while the Shanghai Composite was slightly changed but slightly higher at 3,347.15.
“Vaccine-driven yearning continues to propel marketers to anticipate a virus-free reality to deliver even better results in the new week,” said Jingyi Pan, senior market strategist with IG in Singapore. “Asia-Pacific Market Continues Under Vaccine Flare”.
Even as a fresh surge of COVID-19 transition in Japan, the economy marked a rebound in the third quarter. The recovery is still not at pre-epidemic levels, but such signs are raising optimism about things coming back into business as the world’s third-largest economy.
Fitch Solutions’ Country Risk and Industry Research revised this year’s growth estimate for Japan to a moderate contraction of over 6.3%, and 8.8% contraction from earlier forecasts. For 2021, Fitch returns with a 2.7% increase 2021, which is better than earlier forecasts for 2.1% growth.
“In 2021, we believe that the possibility of availability of a COVID-19 vaccine along with the hold of the Summer Olympics could lead to a sharp jump in domestic demand, which will modify our forecast.”
The Tokyo Games have been postponed for a year in the summer of 2021.
On Wall Street, stocks of companies that would benefit from their forced hibernation exit economy, such as airlines, movie theaters, and banks, led Monday’s rally. This trend was originally echoed in Asia.
At the same time, epidemic winning stocks that benefited from lockdown orders such as Amazon and Zoom Video Communications, no longer appear to play only safe bets.
The Dow jumped 470.63 points or 1.6% to 29,950.44 points. It surpassed its earlier closing record of 29,551.42 in February, sending stocks beset by epidemic fears.
The S&P 500, which matters more for 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 rose 94.84, or 0.8%, to 11,924.13. This outpaced the rest of the market amid lower interest in tech stocks.
There remain risks to global markets. Even if one or both vaccines are eventually approved, it is still uncertain when they can be widely distributed.
The epidemic continues to get worse with increasing coronavirus counts in the United States and Europe, with governments bringing back varying degrees of restrictions on businesses. Some sectors of the US economy have been slow, especially after the expiry of major financial aid programs from Congress.
“The vaccine can help people breathe a sigh of relief, but the devil is in the details,” Jean Goldman, chief investment officer at Citra Financial Group, noted the need for more complete data and final delivery plans.
In the energy trade, benchmark US crude rose 9 cents to $ 41.434 a barrel, hoping that a healthy economy would burn more fuel. Internationally, Brent crude rose $ 1.04 to $ 43.82 a barrel.
In currency trading, the dollar fell from 104.90 yen to 104.49 Japanese yen. The euro costs $ 1.1865, down from $ 1.1845.