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Asia markets extend rally into the weekend

Asia markets extend rally into the weekend

HONG KONG: Asian markets maintained their upward momentum Friday, heading into the weekend on a strong note with investors continuing to take heart from the prospect of vaccines being rolled out in the next few weeks.

Hopes are high that with at least three inoculations in the pipeline, life can begin to get back to normal next year and give a much-needed boost to the battered global economy.

News of the vaccine successes have sent stocks powering higher, led by airlines and other tourism-linked companies.

Adding to the upbeat mood are easing worries about US political uncertainty after Joe Biden’s election win and Donald Trump’s announcement Thursday that while he thinks the vote was rigged he will step aside if the Electoral College hands him defeat next month.

However, the rally has been kept in check by a frightening surge in virus infections across the United States and Europe, with some other countries including Japan and South Korea now seeing spikes.

There are also worries about a further acceleration in the US after millions ignored official advice and travelled across the country to celebrate Thanksgiving, with top infectious disease expert Anthony Fauci saying he expected to see “a surge superimposed upon a surge” after the holiday.

The increase in new cases has forced governments to reimpose lockdowns and other economically painful containment measures that have raised concerns about the already stuttering recovery.

“Vaccine optimism continues to stir momentum going into December that could confront a slowing economy and liquidity difficulties,” said Ben Emons at Medley Global Advisors.

With US markets closed Thursday for the Thanksgiving holiday, Asian markets were subdued in early trade but found their mojo as the day wore on.

Hong Kong extended its rally into a sixth day and Shanghai rose more than one percent, while there were also gains in Tokyo, Singapore, Seoul, Wellington, Taipei, Mumbai, Bangkok and Jakarta.

But Sydney dropped 0.5 percent after China said it would impose anti-dumping measures on Australian wine, in a further ramping up of tensions between the two countries. Manila fell two percent on profit-taking after a recent surge.

Investors were also given a slight jolt after British pharma giant AstraZeneca said its vaccine, one of the three preparing to be authorised, needed further research after questions emerged over how much protection it offers.

The firm had said the drug — made with the University of Oxford — was 70 percent effective, and 90 percent effective when an initial half-dose and then a full dose were given.

But US scientists said the higher rate came during tests in people aged 55 and under.

The head of the Oxford Vaccine Group has said further evidence will be available next month, but added that the result was still “highly significant”.

The additional trial was not likely to delay regulatory approval in Britain and the European Union, AstraZeneca said.

– Key figures around 0710 GMT – Tokyo – Nikkei 225: UP 0.4 percent at 26,644.71 (close) Hong Kong – Hang Seng: UP 0.7 percent at 26,996.79 Shanghai – Composite: UP 1.1 percent at 3,408.31 (close) Euro/dollar: UP at $1.1924 from $1.1906 at 2200 GMT Pound/dollar: UP at $1.3365 from $1.3333 Dollar/yen: DOWN at 104.02 Yen from 104.27 yen Euro/pound: DOWN at 89.22 pence from 89.31 pence West Texas Intermediate: DOWN 1.7 percent at $44.95 per barrel Brent North Sea crude: FLAT at $47.80 per barrelLondon – FTSE 100: DOWN 0.4 percent at 6,362.93 (close)New York – Dow: Closed for a holiday