TOKYO, Nov 27 — Asian shares stalled near record highs today as investors weighed renewed doubts about a highly-anticipated coronavirus vaccine against hopes that some of the region’s economies will recovery quicker than their Western peers.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.11 per cent but remained with striking distance of a life-time peak touched this week. Australian shares were down 0.56 per cent. Japan’s Nikkei fell 0.12 per cent in choppy trade.
Shares in China rose 0.37 per cent after data showed Chinese industrial profits hit a nine-year high. South Korean stocks also rose 0.05 per cent.
US S&P 500 e-mini stock futures fell 0.29 per cent in Asian trade. US financial markets were closed yesterday for the Thanksgiving holiday and will trade on a partial schedule later today.
US oil prices extended their declines from a seven-month high due to signs of oversupply.
British drugmaker AstraZeneca’s coronavirus drug was touted as a “vaccine for the world” due to its inexpensive cost, but the efficacy of the vaccine is now facing more intense scrutiny, which experts say could delay its approval.
Several scientists have raised doubts about the robustness of results showing the shot was 90 per cent effective in a sub-group of trial participants who, by error initially, received a half dose followed by a full dose.
“With global case numbers having now topped 60 million... there is certainly some rough terrain ahead for the global recovery, and that can create economic scarring,” analysts at ANZ Bank wrote in a memo.
MSCI’s broadest gauge of world stocks was up 0.02 per cent today in Asia, sitting just below a record high reached in the previous session.
Doubts about the distribution of a coronavirus vaccine have placed renewed focus on the current state of the pandemic, which looks grim for many places.
US hospitalizations for Covid-19 are at a record and experts warn that Thanksgiving could lead to further infections and deaths.
More than 20 million people across England will be forced to live under the toughest restrictions even after a national lockdown ends on December 2. Partial lockdowns in some European countries have also raised concern about economic growth.
The European Central Bank’s chief economist highlighted these concerns in dovish comments yesterday, which pushed European bond yields lower.
The euro, which last bought US$1.1911, showed little reaction because currency traders have largely priced in expectations for additional ECB easing next month.
The dollar index was near its lowest in more than two months, but moves were subdued due to the US trading holiday.
The yield on benchmark 10-year Treasury notes fell to 0.8553 per cent as some investors sought the safety of holding government debt.
US crude dipped 1.4 per cent to US$45.07 a barrel. However, Brent crude rose 0.35 per cent to US$47.79 per barrel.
Fuel demand is falling due to renewed coronavirus lockdowns, but some oil producers are not complying with agreed production cuts, which raises concerns about oversupply.
Spot gold, which is often sought during times of uncertainty, was little changed at US$1,809.60 per ounce following a 0.3 per cent gain yesterday.
Bitcoin, the world’s biggest cryptocurrency, edged up to US$17,264 yesterday, but it tumbled by 8.4 per cent in the previous session after failing to take out its record high of US$19,666.
Bitcoin has rallied around 140 per cent this year, fuelled by demand for riskier assets. — Reuters
