Asia Markets: Asian markets gain on new hope for coronavirus vaccine

Asia Markets: Asian markets gain on new hope for coronavirus vaccine

19 May    Finance News

Asian markets rose in early trading Tuesday, following sharp gains on Wall Street as the U.S. economy continued to slowly reopen and drug maker Moderna announced positive early results from a potential COVID-19 vaccine.

Japan’s Nikkei JP:NIK gained 1.9% and Hong Kong’s Hang Seng Index HK:HSI jumped 1.8%. The Shanghai Composite CN:SHCOMP advanced 0.5% while the Shenzhen Composite CN:399106 rose 0.5%. South Korea’s Kospi KR:180721 surged 1.7%, and benchmark indexes in Taiwan TW:Y9999 , Singapore SG:STI , Malaysia MY:FBMKLCI and Indonesia ID:JAKIDX all gained. Australia’s S&P/ASX 200 AU:XJO rose 1.9%.

In Tokyo trading, Nippon Steel JP:5401 surged while SoftBank JP:9984 fell after posting a massive fiscal-year loss. Link Real Estate Investment HK:823 and PetroChina HK:857 gained in Hong Kong. Samsung Electronics KR:005930 rose in South Korea, while BHP AU:BHP jumped in Australia.

Moderna Inc. US:MRNA shares soared 20% Monday after the company released “compelling” early data from a phase-one clinical trial for its experimental coronavirus vaccine, providing a jolt to markets.

The Dow Jones Industrial Average US:DJIA surged 911.95 points, or 3.9%, to finish at 24,597.37, its best daily gain in six weeks. The S&P 500 US:SPX rose 90.21 points, or 3.2%, to end at 2,953.91. The Nasdaq Composite US:COMP added 220.27 points, or 2.4%, closing at 9,234.83.

“Optimism around economies reopening and a coronavirus vaccine is driving higher equities, oil prices, and weaker USD,” Stephen Innes, chief global markets strategist at AxiCorp, wrote in a note. “Trade tensions remain a critical risk for markets, however,” he wrote, and “caution is warranted with financial markets increasingly decoupling from the real economy.”

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West Texas Intermediate crude for June delivery US:CLM20 was last above $32 a barrel. July Brent crude UK:BRNN20 , the global benchmark, was little changed.

The dollar US:USDJPY was up slightly at 107.40 yen..

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