In the midst of rising COVID-19 infections in the US, hopes for a vaccine found a reflection in the Asian stock markets.
Investors have been watching the vaccine reports closely, as different companies worldwide have been racing to develop a COVID-19 vaccine. The approach of Pfizer and BioNTech is to use a piece of the coronavirus genetic code to “teach” the body to recognize and attack the virus. The early testing of 45 volunteers showed encouraging results, which have been submitted for publication in a scientific journal but not yet reviewed.
“Based on a vaccine trial containing 45 people, including placebos, the V-shaped recovery gnomes, are once again, reaching for the sky,” said Jeffrey Halley, Senior Market Analyst, Asia Pacific at OANDA.
On Wednesday, Asia stock markets closed with the following bullish results:
- the Shanghai Composite Index SHCOMP, +2.13% advanced 0.7%
- the Nikkei 225 NIK, +0.11% in Tokyo climbed 0.6%
- the Hang Seng HSI, 2.85% in Hong Kong, reopening after a holiday, gained 1.5%
- in South Korea, the Kospi 180721, +1.36% rose 0.8%
- Australia’s S&P/ASX 200 XJO, +1.65% added 1.1%
- New Zealand NZ50GR, gained 1.34%
- Singapore STI, +0.90%
- Jakarta JAKIDX, 0.65% also in the green
“It is still a guessing game as to how the COVID-19 lingering impact will sustain,” said Jingyi Pan of IG in a report.
According to two surveys, the manufacturing sector in China improved in Jube, adding to the promising signs of a gradual economic recovery.
Analysts agreed that while the data is pointing in the right direction, the economic recovery from the pandemic, however, is expected to be slow.