Stock market Asia bounces back on vaccine hopes

Published On: December 11, 2020Categories: Stocks & Shares1.4 min read

MSCI’s ex-Japan Asia-Pacific index gained 0.5%, while Nikkei shed 0.6%

Stock market Asia bounced back on Friday as progress on COVID-19 vaccines boosted investor sentiment, but tricky Brexit negotiations and U.S. stimulus talks capped gains in riskier assets.

MSCI’s ex-Japan Asia-Pacific index rose 0.5%, on track for its sixth straight week of gains, while Japan’s Nikkei dropped 0.6%.

Investors bet on stronger economic growth next year as more countries prepare for vaccinations. U.S. authorities voted overwhelmingly to endorse emergency use of Pfizer’s coronavirus vaccine while doses of a COVID-19 vaccine made by China’s Sinovac Biotech SVA.O are rolling off a Brazilian production line.

But buying fizzled out in some markets as talks on U.S. stimulus failed to make progress and after British Prime Minister Boris Johnson said on Thursday there was “a strong possibility” Britain and the EU would fail to strike a trade deal.

With the Brexit deadline on Sunday, the market is curbed by the uncertainties from it, said Takeo Kamai, head of execution services at CLSA.

But he said appetite for recent initial public offerings showed investors were generally upbeat on equity markets. When you look at the popularity of recent IPOs, it is clear investors have positive bias.

Meanwhile on Wall Street, the Dow Jones Industrial Average fell 0.23%, the S&P 500 lost 0.13% and the Nasdaq Composite added 0.54%.

U.S. stocks were mixed as near-term U.S. fiscal stimulus appeared unlikely after Democrat House Speaker Nancy Pelosi suggested wrangling over a spending package and coronavirus aid could drag on through Christmas.

Shares of Airbnb Inc more than doubled in their stock market debut on Thursday, valuing the home rental firm at just over $100 billion in the biggest U.S. initial public offering (IPO) of 2020. Shares in delivery company DoorDash Inc doubled in their first day of trading.

About the Author: Jonathan Adams

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