Asian market grows thanks to positive vaccine news

Asian market grows thanks to positive vaccine news

Investing.com - Asia Pacific Stocks rally Tuesday Morning, Kicking Off The Month On A High As US Market Closes In November From Record Highs.

"The US market has declined and that has held us back a bit," Pepperstone Research Director Chris Weston told Reuters, adding, "People are very optimistic about a good 2021.".

China's Shanghai Composite Index added 0.29% at 22:03 ET (02:03 GMT), while the Shenzhen Component Index was up 0.09%. Data released earlier in the day showed that the Caixin PMI stood at 54.9 in November, with a reading above 50 signifying growth. This was above Investing.com's 53.5 forecast and 53.6 in October..

The data came out alongside manufacturing and non-manufacturing PMIs on Monday, which also exceeded expectations, indicating that China continues to move on its path to recovering from COVID-19. Services PMI by Caixin to be released later this week.

The Hong Kong Hang Seng Index rose 0.37%. Sharp rise in COVID-19 cases will lead to tougher social distancing measures in the city, which take effect on Wednesday, including restrictions on catering and teleworking of most civil servants.

Japanese Nikkei 225 Index Up 1.39%, South Korean KOSPI Up 1.13%.

Australia's ASX 200 soars 1.34%, with the Reserve Bank of Australia expected to decide on monetary policy that will remain unchanged when it meets later today.

Investor confidence remains strong after Moderna announced on Monday plans to request approval for its mRNA-1273 vaccine in the US and Europe, with the company's shares soaring to 20%. Meanwhile, Pfizer and BioNTech are also awaiting reports regarding their own approval request for their BNT162b2 vaccine..

“I am quite convinced that portfolios need to be positioned to maintain good performance in the stock market as we approach 2021,” said Chris Iggo, Chief Investment Officer of AXA Investment Managers..

Meanwhile, investors continue to hope for further monetary easing by the US Federal Reserve, despite the vaccine news. They are hoping for testimony from Fed Chairman Jerome Powell ahead of Congress on Tuesday and Wednesday, as well as a Fed policy meeting on December 15 and 16 for clues on the central bank's next move..

Written by Jina Lee