Asia report: Markets mostly higher, airlines soar on vaccine news

Markets were mostly higher in Asia on Tuesday, as investors in the region got their first chance to cheer Monday’s positive vaccine news from Pfizer and BioNTech.

In Japan, the Nikkei 225 was up 0.26% at 24,905.59, as the yen weakened 0.08% against the dollar to last trade at JPY 105.43.

Robotics specialist Fanuc was up 1.97%, while among the benchmark’s other major components, Uniqlo owner Fast Retailing was down 1.88% and technology giant SoftBank Group lost 4.73%.

Airlines were among the big winners across the region on the back of the vaccine news, with Japan’s ANA Holdings up 18.06% and Japan Airlines 21.21% higher.

The broader Topix index gained 1.12% by the end of trading in Tokyo, closing at 1,700.80.

On the mainland, the Shanghai Composite slipped 0.4% to 3,360.15, and the smaller, technology-centric Shenzhen Composite was 1.05% weaker at 2,308.85.

Fresh data out of China showed its consumer price index was up 0.5% year-on-year in October, falling short of Reuters-polled expectations for growth of 0.8%.

The country’s producer price index, meanwhile, was 2.1% lower year-on-year according to the National Bureau of Statistics, which was almost in line with the 2% fall predicted by the Reuters poll.

South Korea’s Kospi added 0.23% to 2,452.83, while the Hang Seng Index in Hong Kong was 1.1% higher at 26,301.48.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics flat and SK Hynix adding 0.58%.

Korea’s air carriers were in the green, with Asiana Airlines eking out gains of 0.86%, and Korean Air Lines ahead 11.24%.

In Hong Kong, Cathay Pacific rocketed 14.06% and China Eastern Airlines was up 7.93%.

Investors started their trading day in Asia with the news that Pfizer and BioNTech’s Covid-19 vaccine candidate was more than 90% effective at preventing infection with the coronavirus.

That was reportedly a higher-than-expected efficacy rate, and led to a heady day for shares in Europe and on Wall Street on Monday.

“Asian markets were playing catch up as they had already closed by the time Pfizer’s news came out yesterday,” said AJ Bell investment director Russ Mould.

“These movements are nowhere near the scale of the gains seen in Western markets yesterday, which is perhaps a surprise.

“It could be that investors in Asia have had time to weigh up the news and read the commentary that there is still more testing to be done before we can be sure the vaccine works and is safe.”

Oil prices were higher as the region went to bed, with Brent crude last up 1.06% at $42.85 per barrel, and West Texas Intermediate adding 0.72% to $40.58.

In Australia, the S&P/ASX 200 added 0.66% to 6,340.50, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.4% higher at 12,612.39.

Airlines in Australasia were in the green as well, with Qantas rising 8.33% and Air New Zealand 8% firmer.

The down under dollars were in a mixed state against the greenback, with the Aussie last 0.13% weaker at AUD 1.3754, while the Kiwi strengthened 0.05% to NZD 1.4659.