Hopes for a virus vaccine pushed Asian equities higher Tuesday after promising results from two clinical trials, while traders were also encouraged by news that EU leaders had agreed on a stimulus package.
In Japan, the Nikkei 225 gained 0.73% to 22,884.22 while Hong Kong’s Hang Seng rose 1.8%.
Positive studies provided a much-needed shot in the arm for investors, who have been put on edge in recent weeks by worrying spikes in new infections around the world, causing a months-long surge across equities to stumble.
Chinese mainland shares also rose, the Shanghai composite recovered from earlier losses to gain 0.2% to 3,320.89 while the Shenzhen component index added 0.65% to 13,536.17 and the Shenzhen composite was up 0.72% at 2,232.69.
European leaders reached a breakthrough agreement over new fiscal stimulus, following marathon talks in Brussels over four days. The European Union’s executive arm, the European Commission, will tap into financial markets to raise 750 billion euros ($857 billion), which would be distributed among countries and sectors most affected by the pandemic. The funds would be disbursed in the form of grants and loans.
Elsewhere, Moody’s Investors Service said in a report that Chinese companies’ earnings were set to grow slower or even decline this year due to the pandemic’s impact on economic growth before recovering in 2021. The largest downward revision was for companies in the auto and auto-related, oil and gas, and oilfield sectors.
Other Markets
South Korea’s Kospi index rose 1.39% to 2,228.83.
Australia's benchmark ASX 200 added 2.58% to close at 6,156.30, with the heavily weighted financials subindex up 2.9%.
The Straits Times index in Singapore gained 0.53%.
The Jakarta Composite rose 1.41%.
