The stock markets in the Asia-Pacific region are in a very positive mood on Thursday. The major stock indexes are growing following positive news about the coronavirus vaccine. More precisely, a wave of enthusiasm was caused by the news about the beginning of the use of the drug in the general population. According to analysts, this will be a turning point in the fight against the pandemic, which means that the economic recovery of the regions and the world as a whole will go at an accelerated pace.
The coronavirus vaccine will be the cherry on the cake for the risky asset sector. It is able to support them and allow them to significantly increase their value. Now, their demand has increased and this was especially noticeable after the tension eased on the recent US presidential elections.
On Wednesday, market participants were encouraged by the news that the UK became the first Western country to approve the mass use of a vaccine against coronavirus which was developed by Pfizer and BioNTech. This will allow starting the widespread vaccination of the population from next week.
Following the UK, the Japanese government also signed a bill that allows free mass vaccination against COVID-19 in the state. It also has a fairly large budget to buy Pfizer vaccine for 60 million people, Moderna for 25 million, and AstraZeneca for 120 million.
Japan's Nikkei 225 Index rose 0.03%.
In contrast, China's Shanghai Composite Index declined 0.46% and was the only regional indicator that went into the red. The Hong Kong Hang Seng index did not support the negative trend and gained 0.58%.
China's statistics continue to please both local authorities and market participants. In particular, the PMI index in the country's services sector for the last month of autumn reached its maximum value for the previous ten years. It has moved to 57.8 points, compared to 56.8 points previously.
South Korea's KOSPI jumped 0.66%.
Australia's S&P / ASX 200 index rose 0.4%, which allowed it to take the highest mark in the last eight months. Recall that the indicator started to grow rapidly a couple of weeks ago, and so far its pace continues to remain on a positive wave. This fact is also confirmed by statistical data. The level of the foreign trade surplus for October took a record position of 7.46 billion Australian dollars. A month earlier, this value was 5.82 billion Australian dollars.
European stock exchanges, on the contrary, exhibits negative dynamics. Most of the indicators went into the red zone amid serious concerns about the worsening epidemiological situation and uncertainty in the trade sector. At the same time, even the news about the stimulus program in the United States could not provide proper support.
According to statistics released on Thursday, the level of retail sales for the second month of autumn was twice as high as originally projected. It increased by 1.5% compared to the previous month, and compared to the same indicator last year – by 4.3%.
The overall PMI of the 19 countries that make up the region showed a decline in the last month of autumn to 45.3 points, while earlier it was equal to 50 points. This rapid decline in the indicator has become the highest since the end of this spring.
The general index of large enterprises in the European region STOXX Europe 600 fell 0.31% this morning and took the position at 390.48 points.
The UK FTSE 100 Index sank 0.21%. The German DAX Index dropped 0.53%. France's CAC 40 index fell 0.42%. Italy's FTSE index is down 0.11%. Spain's IBEX 35 Index fell 0.45%.
