Hong Kong Stock Rise On Vaccine Trial Reports

Hong Kong stocks rallied onTuesday morning as investors cheered news of two positive vaccine trials, which overshadowed concerns about a spike in infections around the world.

The Hang Seng Index jumped 1.9 percent, to 25,529.

On the mainland, the Shanghai Composite Index was flat at the break, at 3,316 while the Shenzhen Composite Index added 0.2 percent, to 2,222.

Other Asian equities were higher after reports of promising results from two clinical trials, while traders were also keeping tabs on an EU summit aimed at hammering out a stimulus package for the bloc.

Tokyo went into the break 0.6 percent higher, while Sydney, Seoul, Taipei and Wellington all jumped more than 1 percent. Singapore and Jakarta were also up.

"While the unrelenting optimistic news flow on Covid-19 treatments and cures will continue to pique investor interest, markets are counting on (stimulus) and fiscal accommodation to buttress against the deteriorating data backdrop and economic disarticulation until the vaccine deal is sealed," said Stephen Innes, of AxiCorp.

But he warned: "With so much optimism built around a medical breakthrough, either Covid-19 will be treatable and vaccinated out of existence soon, or this stock market could be in a world of hurt." (AFP)

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