Stock markets in the Asia-Pacific region experienced a rise this morning, which was a signal to the news about the final stage of preparation and release of a vaccine against coronavirus infection. Pharmaceutical Corporation Pfizer has announced that it has successfully tested the drugs it developed.
China’s Shanghai Composite Index skyrocketed by 2.13% to reach 3090.57 points. The blue-chip index CSI300 also steadily climbed 2.07% to reach 4335.84 points.
The PRC financial sector index rose by a record of 3.85%. Indices of consumer goods and real estate sectors were also not far behind. The first jumped 2.3%, while the second confidently climbed 3.47%. The healthcare index, although not so significant, also went up by 0.62% more.
Hong Kong’s HangSeng Index also rose by 2.85% sending it to around 2512.19 points. Even greater success was achieved by the Hang Seng China Enterprises Index, which immediately increased by 3.06% and went to the level of 10,056.86 points.
Positive dynamics in the Chinese and Hong Kong markets were provided by news from the government, which announced that it wanted to increase sales of special treasury bonds. This should support the health sector and other sectors of the economy. In total, the amount of bond placement for 1 trillion yuan over the current year is announced.
Japan’s Nikkei 225 Index followed a positive trend from China and rose 0.44%.
The South Korean KOSPI Index is up by 0.88%.
Australia’s ASX 200 Index also went up 1.03%
Positive trends in the Asian market are caused, first of all, by successful trials of a vaccine against coronavirus infection. However, not all market participants share such stormy emotions. Recall that earlier there was also news that another vaccine was already undergoing the finishing tests, which in the end failed. Some investors suggest recalling past experiences and being careful in this situation.
Meanwhile, the total number of people infected with coronavirus infection in the world continues to grow rapidly. To date, more than 10.5 million cases have already been reported. This may push the authorities in individual countries where the epidemiological situation is especially tense, to return to quarantine measures, which were previously slowly lifted. In this regard, I would like to note that the news about the possible release of the vaccine will not be able to support markets for too long that will inevitably return to correction unless other positive factors for growth arise.
The material has been provided by InstaForex Company – www.instaforex.com