(ATF) Hong Kong: Investors rode the wave of optimism unleashed by Pfizer’s vaccine approval and upbeat news from the world’s third largest economy but the Hang Seng benchmark underperformed in Asia after the Trump administration barred investors from buying US-listed Chinese stocks that are also traded in Hong Kong.
Pfizer and BioNTech said the US Centers for Disease Control and Prevention committee approved emergency use of its vaccine and deliveries were to start Monday.
Big Japanese manufacturers’ sentiment rose surprisingly strongly in the fourth quarter of 2020, data published on Monday showed. Analysts expect the world’s third-largest economy to rebound relatively swiftly from the dislocation caused by the coronavirus pandemic.
“The survey bolsters our view that Japan will recover quickly once the third wave of coronavirus is brought back under control, with output likely to be back at pre-virus levels in mid-2021,” said Tom Learmouth, Japan Economist at Capital Economics.
Japan’s Nikkei 225 index climbed 0.3%, Australia’s S&P ASX 200 added 0.26%, China’s CSI300 jumped 0.92% but Hong Kong’s Hang Seng index eased 0.44% after the US President’s executive order which blocked Chinese firms from investors books. Regionally, the MSCI Asia Pacific index advanced 0.61%.
Investors shunned safe haven assets with gold falling 0.77% to $1,825 per ounce and US Treasuries slipping with the 10-year yield rising 3 basis points to 0.93%.
Optimism about the return to normalcy propelled risk assets.
“Global vaccine supply is likely to become plentiful. Achieving the top-10 developer production targets would deliver enough doses to vaccinate 85% of the world’s population in 2021,” Goldman Sachs economists said in a note.
“We still expect large shares of Developed Market populations to be vaccinated by mid-year. The point at which 50% of the population is vaccinated looks realistic in April for the US and UK, May for Canada, June for the EU and Australia, and July for Japan. Most large Emerging Markets should reach 50% vaccination in the second half of 2021.”
Also on Asia Times Financial:
China tightens its grip on global rare earths trade
China opportunities and challenges in 2021 and beyond
Alibaba and Tencent fined and warned as China ramps up deal scrutiny
China’s new home prices slow in November
Japanese companies show surprising confidence in latest tank survey
Asia Stocks
· Japan’s Nikkei 225 index climbed 0.3%
· Australia’s S&P ASX 200 added 0.26%
· Hong Kong’s Hang Seng index eased 0.44%
· China’s CSI300 jumped 0.92%
· The MSCI Asia Pacific index advanced 0.61%.
Stock of the day
Sunac China Holdings rose as much as 4.6% after it announced the spin-off and separate listing of its unit Sunac Services Holdings Ltd on the Hong Kong Stock Exchange.
