Asian markets gain on new hope for COVID-19 vaccine

Nikkei, Hang Seng rise after Moderna’s early-stage drug trial hikes Wall StreetAsian markets went up in early trading Tuesday, following strong gains on Wall Street. The U.S. economy continued to reopen slowly, and drugmaker Moderna announced positive initial results from a potential COVID-19 vaccine.

Japan’s Nikkei NIK, +0.79% gained 1.9% and Hong Kong’s Hang Seng Index HSI, +0.04% jumped 1.8%. The Shanghai Composite SHCOMP, -0.51% advanced 0.5% while the Shenzhen Composite 399106, -0.97% rose 0.5%. South Korea’s Kospi 180721, +0.45% surged 1.7%, and benchmark indexes in Taiwan Y9999, +0.43% , Singapore STI, -0.75% , Malaysia FBMKLCI, +0.78% and Indonesia JAKIDX, -0.05% all gained. Australia’s S&P/ASX 200 XJO, +0.24% rose 1.9%.

In Tokyo trading, Nippon Steel 5401, +0.90% surged while SoftBank 9984, +1.00% fell after posting a massive fiscal-year loss. Link Real Estate Investment 823, -0.36% and PetroChina 857, -1.43% gained in Hong Kong. Samsung Electronics 005930, -0.59% rose in South Korea, while BHP BHP, -0.94% jumped in Australia.

Moderna Inc. MRNA, -10.41% shares soared 20% Monday after the company released “compelling” early data from a phase-one clinical trial for its experimental coronavirus vaccine, providing a jolt to markets.

The Dow Jones Industrial Average

DJIA, -1.58% attained 911.95 points, or 3.9%, to end at 24,597.37, its best daily gain in six weeks. The S&P 500 SPX, -1.04% rose 90.21 points, or 3.2%, to end at 2,953.91. The Nasdaq Composite COMP, -0.53% gained 220.27 points, or 2.4%, ending at 9,234.83.

“Optimism around economies reopening and a COVID-19 vaccine drives bigger equities, oil prices, and lower USD,” Stephen Innes, chief global markets strategist at AxiCorp, explained. “Trade tensions remain a demanding risk for markets; however,” he said, and “caution is warranted with financial markets rapidly decoupling from the economy.”

West Texas Intermediate crude for June delivery CLM20, +1.69% was last above $32 a barrel. July Brent crude BRNN20, 1.24%, the global benchmark, was little changed.The dollar USDJPY, -0.05%, was up slightly at 107.40 yen