Nikkei Sharply Higher Due to Optimism About Vaccine

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In Japan, where investors returned after a long weekend, the stock market closed sharply higher on Tuesday.

 

The encouraging test results of a cheaper and easier-to-store vaccine from pharmaceutical company AstraZeneca sparked hope for a speedy recovery from the corona crisis.

The news that the transfer of power in the United States to the new administration of President-elect Joe Biden can officially begin also caused optimism.

The recognition of his election victory by the federal government’s General Services Administration (GSA) gives Biden access to federal government resources and relevant classified information.

Reports that the incoming US president wants to appoint former Federal Reserve (Fed) chairman Janet Yellen as Secretary of the Treasury also fell well with investors.

Tokyo’s main index, the Nikkei 225, ended 2.5 percent higher at 26,165.59 points and reached its highest level since May 1991. Mostly the companies hard hit by the corona pandemic such as oil producers and real estate companies were in demand because of the hope that the end of the crisis is in sight.

Chemical group Shin-Etsu Chemical and the robot maker for factories Fanuc were among the strongest risers with profits of 4.7 and 3.8 percent respectively.

The other stock market indicators in the Asian region showed predominantly small price results. The stock market in Shanghai was down 0.4 percent in the meantime, and the Hang Seng index in Hong Kong remained almost flat. The Kospi in Seoul gained 0.5 percent, and the Australian All Ordinaries in Sydney gained 1.3 percent.

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