Not all major markets react positively to Covid-19 vaccine news

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Major global stock markets shares were mixed on Tuesday as
optimism that a vaccine for the coronavirus disease 2019
(Covid-19) might soon be available buoyed only some regional
indexes.

France’s CAC 40 slipped 0.2 percent in early trading to
5,460.09, while Germany’s DAX was down nearly 0.2 percent at
13,119.47.

Britain’s FTSE 100 dipped 0.4 percent to 6,395.76.
United States shares were set to drift lower with Dow futures
slipping 0.2 percent to 29,810.0. S&P 500 futures lost 0.3
percent to 3,611.50.

Moderna said its Covid-19 vaccine appears to be 94.5-percent
effective, according to preliminary data.

It’s the second time this month that a company announced such encouraging numbers
about a vaccine, boosting hopes that the global economy can return to some semblance of normalcy next year.

Japan’s benchmark Nikkei 225 rose 0.4 percent to finish at
26,014.62, a 29-year high.

Australia’s S&P/ASX 200 gained 0.2 percent to 6,498.20. South Korea’s Kospi lost its earlier gains and slipped 0.2 percent to 2,539.15.

Hong Kong’s Hang Seng edged up 0.1 percent to 26,415.09, while the Shanghai
Composite slipped 0.2 percent to 3,339.90.

“The vaccine-driven fervor had continued into the fresh week with even better trial results further inspiring markets to anticipate a virus-free reality in the not too far away future,”
said Jingyi Pan, senior market strategist with IG in Singapore.

“Asia-Pacific markets continue to bask under the vaccine glow.”

Even as a new surge in Covid-19 infections hit Japan, the
economy rebounded in the third quarter.

The recovery has still not reached pre-pandemic levels, but such signs are raising
optimism about things returning to business as normal in the
world’s third-largest economy.

Fitch Solutions Country Risk and Industry Research revised its
growth projection for Japan this year to a more moderate contraction of 6.3 percent from an earlier forecast of an 8.8- percent contraction.

For 2021, Fitch projects a return to 2.7-
percent growth, which is better than its earlier forecast of 2.1-
percent growth.

“In 2021, we believe that the holding of the Summer Olympics
as well as the likely availability of a Covid-19 vaccine could likely
lead to a sharper upsurge in domestic demand, driving our
forecast revision,” it said.

The Tokyo Games have been postponed a year to the summer of
2021.

International Olympic Committee President Thomas,
visiting Tokyo this week, has sought to send a message of
assurance that the games will go on next year.

Bach said a “reasonable number” of fans should be able to
attend the venues, vaccine or no vaccine, and stressed he wants
“as many foreign participants as possible to accept a vaccine.”

Risks remain for global markets. Even if the vaccines are finally
approved, it’s still uncertain when they could be widely
distributed.

The pandemic is continuing to worsen, with rising coronavirus
counts across the United States and Europe pushing
governments to bring back varying degrees of restrictions on
businesses. ASSOCIATED PRESS

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