Pfizer Inc and BioNTech on Monday announced the successful results of the third phase of trials of the COVID-19 vaccine. The results showed the vaccine was 90% effective in preventing infection, boosting both global numbers and hopes for a global economic recovery.
According to Michael McCarthy, chief market strategist at CMC Markets, investors are targeting economic activity and a return to actual business. This can be determined by their support from travel, consumer, finance, material and energy companies.
Some investors expressed a different opinion on the positive sentiment. They noted that there are some factors that can delay the release of the vaccine. These are tests for effectiveness, immunity period, logistics, vaccine storage. Investors also added that there is some uncertainty as to whether the US Congress will pass the latest stimulus package, whether there will be a smooth transfer of power from the current President Donald Trump to President-elect Joe Biden. Also, the situation can be changed by a sharp increase in the number of cases of COVID-19 diseases in the United States.
China's Shanghai Composite Index rose 1.71% by 10:45 pm ET (02:45 GMT), while the Shenzhen Component Index was up 2.9%. Investors will be watching Alibaba's all-day Singles Day and online shopping event to gather information on China's economic recovery.
The Hong Kong Hang Seng Index rose 2.24%.
Japanese Nikkei 225 gained 5.41%, while South Korean KOSPI gained 3.82%. The Australian ASX 200 Index rose 1.79%.
