By YURI KAGEYAMA, A.P. Business writer
TOKYO (AP) – Asian stocks were mixed on Tuesday after the Dow Jones Industrial Average hit a record high on optimism that a vaccine could soon control the coronovirus and the economic devastation it causes.
According to modern data, the COVID-19 vaccine appears to be 94.5% effective. This is the second time this month that a company has unveiled such encouraging numbers about a vaccine, with the hope that the global economy may return somewhat below normal next year.
Japan’s benchmark Nikkei 225 rose 0.3% to 25,994.37 in afternoon trading, reaching a 29-year high of more than 26,000 earlier in the day.
Australia’s S&P / ASX 200 rose 0.2% to 6,498.20 points. South Korea’s Kospi was first in profit and slipped 0.2% to 2,537.94. Hong Kong’s Hang Seng closed down 0.1% at 26,349.91, while the Shanghai Composite slipped 0.4% to 3,332.54.
“Vaccine-driven euthanasia predicts a virus-free reality in motivational markets to deliver even better results in the new week,” said Jingyi Pan, senior market strategist with IG in Singapore. “Asia-Pacific Market Continues Under Vaccine Flare”.
Even as a fresh surge of COVID-19 transition in Japan, the economy marked a rebound in the third quarter. The recovery is still not at pre-epidemic levels, but such signs are raising optimism about things coming back into business as the world’s third-largest economy.
Fitch Solutions’ Country Risk and Industry Research revised this year’s growth estimate for Japan to more than 6.3% moderate contraction, an 8.8% contraction from earlier forecasts. For 2021, Fitch returns with a 2.7% increase in 2021, which is better than earlier forecasts for 2.1% growth.
“In 2021, we believe that the availability of a COVID-19 vaccine, along with the Summer Olympics event, could lead to a rapid increase in domestic demand, which will modify our forecast.”
The Tokyo Games have been postponed for a year in the summer of 2021.
On Wall Street, stocks of companies that would benefit from their forced hibernation exit economy, such as airlines, movie theaters and banks, led Monday’s rally. This trend was originally echoed in Asia.
At the same time, epidemic winning stocks that benefited from lockdown orders such as Amazon and Zoom Video Communications, as they no longer appear to play only safe bets.
The Dow jumped 470.63 points or 1.6% to 29,950.44 points. It surpassed its earlier closing record of 29,551.42 set in February, before fierce panic dipped stocks in February.
The S&P 500, which mattered most to the performance of most 401 (k) accounts, added to its own record set on Friday. It increased 41.76 or 1.2% to 3,626.91. The Nasdaq Composite rose 94.84, or 0.8%, to 11,924.13. This outpaced the rest of the market amid lower interest for tech stocks.
There remain risks to global markets. Even if one or both vaccines are ultimately approved, it is still uncertain when they can be widely distributed.
The epidemic continues to get worse with increasing coronavirus counts in the United States and Europe, with governments bringing back varying degrees of restrictions on businesses. Some sectors of the US economy have been slow, especially after Congress’ large financial-support programs.
“Vaccines can help people breathe a sigh of relief, but the devil is in the details,” Gene Goldman, chief investment officer at Citra Financial Group, noted the need for more complete data and final delivery plans.
Benchmark US crude oil climbed 27 cents to $ 41.61 a barrel in energy trading. Hopefully a healthy economy will burn this fuel. Brent crude rose 36 cents to $ 44.18 per barrel internationally.
In currency trading, the dollar fell from 104.90 yen to 104.52 Japanese yen. The euro costs $ 1.1854, down from $ 1.1845.
AP Business Writers Stan Choe and Damian J. Tris contributed.
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