Thursday, May 28, 2020 | Last Update : 02:17 PM IST

64th Day Of Lockdown

Maharashtra54758169541792 Tamil Nadu177289342128 Delhi152577264303 Gujarat148297139915 Rajasthan76804341172 Madhya Pradesh70243689305 Uttar Pradesh67243824177 West Bengal40091486283 Andhra Pradesh3117206558 Bihar300680014 Karnataka240576245 Punjab2106191840 Telangana1991128457 Jammu and Kashmir175983324 Odisha15937337 Haryana130582416 Kerala9645426 Assam683634 Jharkhand4261534 Uttarakhand400644 Chhatisgarh360790 Chandigarh2781874 Tripura2321650 Himachal Pradesh223634 Goa67280 Puducherry49170 Manipur3940 Meghalaya20121 Nagaland900 Arunachal Pradesh210 Mizoram110 Sikkim100

Asia shares, oil rally on hopes for coronavirus vaccine

REUTERS
Published : May 19, 2020, 9:15 am IST
Updated : May 19, 2020, 9:15 am IST

Oil prices jumped to their highest in over two months, as the easing of global lockdowns boosted

 Asia shares, oil rally on vaccine hopes. (AP Photo)
  Asia shares, oil rally on vaccine hopes. (AP Photo)

SYDNEY: Asian shares jumped on Tuesday and oil extended gains on optimism the global economy would recover quickly following a successful early-stage trial of a coronavirus vaccine, while the euro hovered near a two-week top.

MSCI’s broadest index of Asia Pacific shares outside of Japan .MIAPJ0000PUS rose 1.5% to two-week highs.

Australia's benchmark index and Hong Kong's Hang Sang .HSI were the lead gainers, up 2% each, South Korea .KS11 added 1.8% while China's blue-chip index .CSI300 climbed 0.8%.

Japan's Nikkei .N225 added 2% to the highest since early March.

The gains followed a rally on Wall Street overnight after data from Moderna Inc’s (MRNA.O) COVID-19 vaccine, the first to be tested in the United States, showed it produced protective antibodies in a small group of healthy volunteers.

The positive early test results boosted sentiment as investors wagered on a faster-than-expected economic recovery.

Analysts, for now, expect a steep contraction in world growth with the outlook for 2021 still uncertain with no approved treatments or vaccines for COVID-19 currently.

Experts predict a safe and effective vaccine could take 12 to 18 months to develop.

On Wall Street overnight, the benchmark S&P 500 .SPX posted its biggest one-day percentage gain in almost six weeks, gaining 3.15%. The Dow Jones Industrial Average .DJI rose 3.85% and the Nasdaq Composite .IXIC added 2.44%.

“It may be the case that central bank liquidity is chloroforming markets to overlook risks such as overleveraged corporate and government balance sheets, growing COVID-19 case numbers, growth holes and a slow recovery path,” analysts at Perpetual wrote in a note.

E-minis for the S&P 500 were off 0.2% in Asian trading.

The vaccine optimism sent treasury yields surging overnight as investors dumped bonds, while gold came off its peak. Spot prices were last up 0.4% $1,739.2 an ounce.

There was good news in Europe too, after France and Germany called for the creation of a 500 billion euro ($543 billion) Recovery Fund able to offer grants to the countries and regions hardest hit by the coronavirus crisis.

The euro hovered near a two-week top at $1.0907. The British pound was up 0.1% at $1.2201. The risk sensitive Australian and New Zealand dollars were also up slightly.

The safe haven yen eased on the greenback to be last at 107.40 per dollar.

“Business survey data for the U.S. improved to merely terrible in May, up from truly awful in April,” JP Morgan Chase economists said in a note on Tuesday.

“But collectively these data support our forecast that monthly activity measures from May onward should, in general, start to look better as restrictions are gradually eased.”

Oil prices jumped to their highest in over two months, as the easing of global lockdowns boosted hopes of economic activity and as producers appeared to be following through with planned production cuts.

Brent crude was last up 1.24%, or 43 cents, at $35.21. U.S. crude jumped 2.7%, or 87 cents, to $32.69.

Tags: antibodies, asian shares, coronavirus crisis, coronavirus vaccine, dow jones, equity markets, jp morgan chase, lockdowns, oil prices, stock markets, treasury yields, wall street
ADVERTISEMENT
ADVERTISEMENT