Asian stocks, Wall Street climb, European shares hover at possibility of coronavirus vaccine

Gulf Today Report

Asian stock markets jumped on Tuesday on the prospect of a coronavirus vaccine. 

Benchmarks in Shanghai, Tokyo, Hong Kong and Sydney rose while Seoul fell less than 0.1%.

In a report, Tai Hui, JP Morgan Asset Management said the announcement of the effectiveness of the vaccine offers a ray of hope for the market. 

The Shanghai Composite Index gained 0.1% to 3,377.64 and the Nikkei 225 in Tokyo rose 0.3% to 24,903.44. The Hang Seng in Hong Kong advanced 0.7% to 25,202,58.

The S&P-ASX 200 in Sydney advanced 0.7% to 6,375.60 while the Kospi in Seoul declined to 2,445.37. India's Sensex opened up 0.7% at 42,888.24. New Zealand and Southeast Asian markets also rose.

Wall Street

The benchmark S&P 500 index on Wall Street closed 1.2% higher on Monday after Pfizer Inc. said their coronavirus vaccine could be 90% effective. 

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The uncertainty of the battle for the US presidency seems good for the markets. Democrat Joe Biden won the election over the weekend, Donald Trump is yet to concede.

Investors are hopeful that the split of Congress between Democrats and Republicans might make it harder for the new administration’s policy on tax and regulatory changes to pass. 

The dollar declined to 104.96 yen from Monday's 105.45 yen. The euro advanced to $1.1835 from $1.1831. 

European Shares

European shares remain steady at eight-months high on Tuesday as Pfizer announce a 90% effective coronavirus vaccine. 

Although, concerns about the economic damage of the pandemic still hangs. 

The pan-European STOXX 600 was flat at 4% following the vaccine announcement. 

Michael Hewson, market analyst at CMC Markets UK commended the results of the Pfizer study. 

However, there is still a long way to go before the world returns to normalcy, he added. 

European shares have increased by 11% this month already due to the probability of easy global trade under Joe Biden’s administration. 

Banking, travel and leisure, and energy stocks gained by more than 7% on Monday. 

Also, investors are focusing on Brexit trade talks, Britain’s transition period will be expiring by the end of the year.