HONG KONG, Nov 27, 2020 (BSS/AFP) – Asian markets drifted Friday as
investors took their feet off the pedal after rallying for the past month on
vaccine optimism and easing US political uncertainty.
Hopes are high that with at least three inoculations close to being rolled
out, life can begin to get back to normal next year and give a much-needed
boost to the battered global economy.
News of the vaccine successes have sent stocks powering higher, led by
airlines and other tourism-linked companies.
But the rally has been kept in check by a frightening surge in virus
infections across the United States and Europe, with some other countries
including Japan and South Korea now seeing spikes.
There are also worries about a further acceleration in the US after
millions ignored official advice and travelled across the country to
celebrate Thanksgiving, with top infectious disease expert Anthony Fauci
saying he expected to see “a surge superimposed upon a surge” after the
holiday.
The increase in new cases has forced governments to reimpose lockdowns and
other economically painful containment measures that have raised concerns
about the already stuttering recovery.
“Vaccine optimism continues to stir momentum going into December that could
confront a slowing economy and liquidity difficulties,” said Ben Emons at
Medley Global Advisors.
With US markets closed Thursday for the Thanksgiving holiday, Asian markets
were subdued going into the weekend.
Hong Kong fell after five days of gains, while there were also losses in
Singapore, Seoul, Wellington, Taipei and Manila. Sydney dropped 0.7 percent
after China said it would impose anti-dumping measures on Australian wine, in
a further ramping up of tensions between the two countries.
Investors were also given a slight jolt after British pharma giant
AstraZeneca said its vaccine, one of the three preparing to be authorised,
needed further research after questions emerged over how much protection it
offers.
The firm had said the drug — made with University of Oxford — was 70
percent effective, and 90 percent effective when an initial half-dose and
then a full dose were given.
But US scientists said the higher rate came during tests in people aged 55
and under.
The head of the Oxford Vaccine Group has said further evidence will be
available next month, but added that the result was still “highly
significant”.
The additional trial was not likely to delay regulatory approval in Britain
and the European Union, AstraZeneca said.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 0.1 percent at 26,506.97 (break)
Hong Kong – Hang Seng: DOWN 0.3 percent at 26,741.04
Shanghai – Composite: UP 0.1 percent at 3,373.42
Euro/dollar: UP at $1.1915 from $1.1906 at 2200 GMT
Pound/dollar: UP at $1.3360 from $1.3333
Dollar/yen: DOWN at 104.10 yen from 104.27 yen
Euro/pound: DOWN at 89.17 pence from 89.31 pence
West Texas Intermediate: DOWN 1.4 percent at $45.08 per barrel
Brent North Sea crude: UP 0.3 percent at $47.95 per barrel
London – FTSE 100: DOWN 0.4 percent at 6,362.93 (close)
New York – Dow: Closed for a holiday