TOKYO, Nov 12 — Asian shares rose toward a more than two-year peak today, buoyed by sustained global stimulus efforts and hopes of a coronavirus vaccine, but some analysts warned of the risk of a correction lower.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.44 per cent, approaching the highest since January 2018. Chinese shares rose 0.37 per cent. Stocks in Japan rose 0.62 per cent to a 29-year high.

Australian stocks bucked the regional trend and fell 0.31 per cent as a decline in copper prices hurt shares in miners. S&P 500 stock futures fell 0.15 per cent.

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Oil futures rose toward two-month highs due to optimism about a vaccine and a larger-than-expected drawdown in US crude inventories.

The gains in Asia came after a mixed performance for US stocks as investors switched back to technology stocks and away from economically sensitive sectors as they weighed Covid-19 vaccine progress and the likely timing of an economic rebound.

“The markets are waiting for more news about the virus, so it is difficult for investors to short equities,” said Daiju Aoki, regional chief investment officer for Japan at UBS Securities.

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“These expectations can keep equities going for another few weeks, but there are still questions about the effectiveness of a vaccine and about US fiscal policy. We could see a correction early next year.”

The Dow Jones Industrial Average fell 0.08 per cent yesterday, but the Nasdaq closed up 2 per cent, and the S&P 500 gained 0.77 per cent.

Encouraging comments from European Central Bank chief Christine Lagarde on continued economic support boosted European shares for the third straight session.

Moderna Inc said yesterday it is preparing to submit data on its experimental Covid-19 vaccine to an independent safety board, which should help determine the vaccine’s efficacy.

Pfizer also said on Monday that its vaccine was more than 90 per cent effective and it may release safety data later this month.

Investors the world over are keenly awaiting details on both drugs, but some analysts warn it will still take a long time to distribute an effective vaccine.

In the currency market, the New Zealand dollar soared for a second straight session to a 19-month high as investors unwound bets on the introduction of negative interest rates.

The kiwi got an added boost after Reserve Bank of New Zealand Assistant Governor Christian Hawkesby said the economy required less stimulus than it did in August.

The US dollar edged lower against the Japanese yen and the Chinese yuan as traders adjusted positions before US President-elect Joe Biden takes office next year.

Global oil benchmark Brent rose 0.48 per cent to US$44.01 (RM181.94) a barrel, approaching a two-month high. US crude futures also gained 0.55 per cent to US$41.62 a barrel.

“Crude markets remain torn by the bleak near-term picture with curfews, closures and shutdowns becoming more widespread across the US and Europe; and the medium-term picture where vaccines may bring a return to more normal conditions,” Westpac analysts for Australia and New Zealand wrote in a note today.

Spot gold edged up 0.22 per cent to US$1,868.76 an ounce.

Benchmark 10-year Treasury yields fell slightly to 0.9406 per cent and the yield curve flattened in Asian trade. The US bond market was closed yesterday in observance of Veterans Day after the 10-year yield reached the highest level since March. — Reuters