Asian shares buoyed by coronavirus vaccine hopes
- 14 Sep 2020
Asian shares firmed on Monday on renewed hopes for a coronavirus vaccine after AstraZeneca resumed its phase-3 trial though sentiment was still cautious ahead of a big week of central bank meetings in UK, Japan and the United States.
Most major markets across Asia were in the green with MSCI's broadest index of Asia-Pacific shares outside Japan rising 0.9% for its second straight session of gains.
Australian shares climbed 0.6% while Japan's Nikkei added 0.7%. Chinese shares started firm but pared some of the early gains with the blue-chip index last up 0.1%.
Friday marked six months since the World Health Organization (WHO) declared the coronavirus a pandemic on March 11.
Since then, major global economies have slipped into recession and millions have lost their jobs, prompting central banks around the world to launch unprecedented stimulus.
READ MORE
Amazon to hire 100,000 more workers in its latest job spree this year
Oil moves higher as storm threatens US Gulf Coast
Automakers seek easing of rules for shipment of spares to India
The policy bazooka has buoyed financial markets, with the S&P500 up 22%, 10-year Treasury yields diving 20.4 basis points and the greenback sliding 3.3%. The best performing major currency has by far been the Australian dollar , up 11.9%, thanks to sound risk appetite.
A vaccine has long been awaited to help pull the world out of a coronavirus-induced lockdown.
"The reopening of the global economy is enticing us to recommend a trade going long a basket of 14 laggard 'back to work' stocks versus a basket of 14 high-flying 'COVID-19 winners'," BCA Research wrote in a note.
The Bank of Japan and the Bank of England will announce their respective policy decisions on Thursday.
Market focus will also be on the election of Japan's new Prime Minister with results of a party room vote expected around 0630 GMT.
Reuters
