Asian share markets mostly shot higher on Tuesday driven by regional airline, tourism and travel stocks as global investors applauded progress in the development of a coronavirus vaccine which lifted confidence in a world economic recovery.
The vaccine news sparked renewed optimism in equities around the world but oil prices slipped in Asian trade after posting the biggest one-day percentage gain in five months."Given more tests are needed, then the approval process. Manufacturing and distribution would mean the vaccine, if truly effective, is still months away from mass deployment," said Tai Hui, chief Asia market strategist at JPMorgan Asset Management.
Airline, travel and tourism stocks across Asia were beneficiaries of the optimism prompted by the vaccine announcement.Qantas Airways gained 8.6per cent to hit its highest level since March, Japan Airlines shot 17.6per cent higher and ANA Holdings rose 16.4per cent."Markets will get ahead of themselves in the short term with the vaccine news but longer term it feels like it is going higher," Ord Minnett advisor John Milroy said from Sydney.
On Wall Street, the Dow Jones Industrial Average rose 2.95per cent, the S&P 500 gained 1.17per cent while the Nasdaq Composite dropped 1.53per cent. E-mini futures for the S&P 500 rose 0.47per cent. Senator Mitch McConnell said in a speech that President Donald Trump was well within his rights to look into charges of election"irregularities" but did not offer any evidence of fraud.The yen strengthened 0.3per cent to 105.03 per dollar, while sterling was last trading at US$1.3174, up 0.09per cent on the day.