Asia stocks rise following Wall Street rally and positive vaccine news
Hong Kong’s Hang Seng Index(HSI) rose 1.3%, China’s Shanghai Composite(SHCOMP) was up 0.1% and South Korea’s Kospi(KOSPI) rose 0.7%.
Japan’s Nikkei(N225) led the region’s gains, rising around 2% to its highest level since early 1991. Shares in the country’s flagship carrier ANA jumped nearly 3%, after Japan and China announced on Tuesday that they had agreed to resume business travel by end of month.
US stock futures were also slightly up. Dow(INDU) futures rose 100 points, or 0.4%. S&P(SPX) futures were up 0.4% and Nasdaq(COMP) futures were up 0.6%.
The spate of promising coronavirus vaccine developments in recent weeks is driving the global stocks surge, according to Stephen Innes, chief global market strategist at Axi.
“Global investors are elated by the vaccine news,” Innes wrote in a note on Wednesday.
Investors are also relieved to see that a formal transition from US President Donald Trump to President-elect Joe Biden is finally underway, Innes said.
The US General Services Administration is starting the so-called ascertainment process, which allows Trump administration officials to coordinate with the Biden team. Sources confirmed to CNN that former Federal Reserve chair Janet Yellen will be Biden’s nominee for Treasury Secretary.