Asian stocks keep rising on hopes over coronavirus treatment
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Sydney — Asian shares advanced for a second consecutive session on Monday, underpinned by coronavirus hopes after the US Food & Drug Administration (FDA) authorised the use of blood plasma from recovered patients as a treatment option.
The announcement from the US FDA of a so-called “emergency use authorisation” came on the eve of the Republican National Convention, where Donald Trump will be nominated to lead his party for four more years.
E-Mini futures for the S&P 500 gained 0.3%.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 0.65%, moving towards a six-month high touched last week.
Japan’s Nikkei reversed early losses to be last up 0.4%. Chinese shares rose too with the blue-chip CSI 300 index adding 0.8%.
South Korea’s Kospi, which has been on a slippery slope since hitting a more than two-year peak earlier this month, climbed 0.9%.
Sentiment was also supported by a Financial Times report that the Trump administration is considering bypassing normal US regulatory standards to fast-track an experimental coronavirus vaccine from the UK for use in the US before the presidential election.
“Markets are opening this morning to optimism on the therapeutics front after the FDA authorised the use of blood plasma from Covid-19 survivors to treat sick patients,” said Stephen Innes, chief global markets strategist at AxiCorp.
Record highs
“[It is] not the Covid-19 cure all the world is hoping for, but it is another positive step to help patient recovery time and get people back on their feet quicker.”
Analysts still urged caution with Wall Street indices already at record highs even as the world economy struggles to recover from the once-in-a-century pandemic.
“With risks rising somewhat and September a full month for policy, the end of summer is a good time to cross-check valuations and to consider both threats and opportunities,” said JPMorgan cross asset analyst John Normand.
Normand pointed to talks of a US fiscal package, the Fed’s policy review next month and the ramping up of the US election campaign as risk events over coming weeks.
Looming large over this week is a keenly anticipated address by Federal Reserve chair Jerome Powell at the Kansas City Fed Jackson Hole symposium, where he will talk on the Fed’s monetary policy framework review.
“This takes on even more significance after the market’s evident disappointment last week,” said Ray Attrill, head of forex strategy at Melbourne-based National Australia Bank.
The ...
The announcement from the US FDA of a so-called “emergency use authorisation” came on the eve of the Republican National Convention, where Donald Trump will be nominated to lead his party for four more years.
E-Mini futures for the S&P 500 gained 0.3%.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 0.65%, moving towards a six-month high touched last week.
Japan’s Nikkei reversed early losses to be last up 0.4%. Chinese shares rose too with the blue-chip CSI 300 index adding 0.8%.
South Korea’s Kospi, which has been on a slippery slope since hitting a more than two-year peak earlier this month, climbed 0.9%.
Sentiment was also supported by a Financial Times report that the Trump administration is considering bypassing normal US regulatory standards to fast-track an experimental coronavirus vaccine from the UK for use in the US before the presidential election.
“Markets are opening this morning to optimism on the therapeutics front after the FDA authorised the use of blood plasma from Covid-19 survivors to treat sick patients,” said Stephen Innes, chief global markets strategist at AxiCorp.
Record highs
“[It is] not the Covid-19 cure all the world is hoping for, but it is another positive step to help patient recovery time and get people back on their feet quicker.”
Analysts still urged caution with Wall Street indices already at record highs even as the world economy struggles to recover from the once-in-a-century pandemic.
“With risks rising somewhat and September a full month for policy, the end of summer is a good time to cross-check valuations and to consider both threats and opportunities,” said JPMorgan cross asset analyst John Normand.
Normand pointed to talks of a US fiscal package, the Fed’s policy review next month and the ramping up of the US election campaign as risk events over coming weeks.
Looming large over this week is a keenly anticipated address by Federal Reserve chair Jerome Powell at the Kansas City Fed Jackson Hole symposium, where he will talk on the Fed’s monetary policy framework review.
“This takes on even more significance after the market’s evident disappointment last week,” said Ray Attrill, head of forex strategy at Melbourne-based National Australia Bank.
The ...
