Equities catch some Modern(a) love in Asia

Moderna vaccine trial boost US markets

Asia is seeing patchy price action today, with the Moderna vaccine trial results lifting US aftermarket futures and most exchanges across the region. Moderna announced positive results from its experimental Covid-19 from another small-scale human trial. More significantly this time, the results have been published in a peer-reviewed journal, meaning independent eyes have been cast over the results.

Dow Jones futures have climbed 0.80% this morning on the Moderna news after a strong showing overnight. The S&P 500 rose 1.35%, the Nasdaq 0.95% and the Dow Jones jumped 2.15% as Wall Street shrugged off dovish Federal Reserve recovery comments. The Nasdaq, seemingly invulnerable this year, has not reversed the very bearish technical price action of Monday though. Until it does, the equity rally of overnight and today should be approached with caution.

The Nikkei 225 has jumped 1.30% today, catching the vaccine wave and an unchanged Bank of Japan. The Kospi has risen 0.40% with Singapore rising 1.0%, boosted by potential trade travails going forward for Hong Kong.

All of the China indices are lower today after President Trump signed the Hong Kong Law and prompted removed the SAR’s special trading status. The United Kingdom overnight banned Huawei from its incoming 5G network. Combined, the news has dampened sentiment in China, with local traders anticipating more tit-for-tat trade retaliations from both sides. The Shanghai Composite is down 1.40%, with the CSI 300 and Hang Seng both lower by 0.50%.

Looking forward, European stock markets will likely open higher, boosted by vaccine hopes and the hoped-for European Union recovery package nearing an agreement.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific, from 2016 to August 2022
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley was OANDA’s Senior Market Analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV and Channel News Asia as well as in leading print publications such as The New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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