Hong Kong: Asian markets fell across the board as investors took profits after a record rally this month following major progress toward a coronavirus vaccine.
The undertone remains upbeat despite all major stock markets ending with losses for the day, as investors eyed the economic rebound in the fastest recovering region in the world.
“Vaccine optimism has driven risk appetite and stock markets higher across November. Over the past month Pfizer, Moderna and AstraZeneca have all revealed upbeat results from their clinical trials,” Fiona Cincotta, a financial markets analyst at Gain Capital, said.
“A vaccine is the quickest and surest way for global growth to return to pre-pandemic levels.”
Reflecting the firm undertone, the US dollar against a basket of currencies, fell 0.2% to 91.63 and gold dropped 1% to $1,770 per ounce. US Treasuries also fell with the 10-year yield rising 1.5 basis points to 0.86%.
Economic recovery and rising hopes of a return to normalcy is driving the upbeat mood.
China’s factory activity expanded at the fastest pace in more than three years in November as the world’s second largest economy extended its rebound from the coronavirus pandemic shock.
“Today’s PMI readings showed China’s recovery has continued to pick up. In our view, we think this decreases the likelihood of further monetary easing this year, and we expect the LPR to remain on hold through 2021,” Erin Xin, HSBC’s Economist for Greater China, said.
“That said, labour market pressure persists and the recovery in the private sector is still lagging behind. Thus, we expect policymakers are unlikely to shift to a tightening stance anytime soon.”
Japan’s Nikkei 225 index fell 0.79%, Australia’s S&P ASX 200 eased 1.26%, Hong Kong’s Hang Seng index tumbled 2.06%, and China’s CSI300 dropped 0.41%. The MSCI Asia Pacific index retreated 1.56%
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Asia Stocks
· Japan’s Nikkei 225 index fell 0.79%
· Australia’s S&P ASX 200 eased 1.26%
· Hong Kong’s Hang Seng index tumbled 2.06%
· China’s CSI300 dropped 0.41%
· The MSCI Asia Pacific index retreated 1.56%.
Stock of the day
Oil and gas giant CNOOC fell as much as 14% after a report the Trump administration is about to add China’s national offshore oil and gas producer to a blacklist of alleged Chinese military companies.
This report appeared initially on Asia Times Financial.