BOSTON - Asian shares rose on Wednesday as hopes for a successful coronavirus vaccine lifted expectations of a swift reopening of the global economy, which would help the region's heavily trade-dependent markets.
The gains in Asia came despite the S&P 500 index slipping slightly and the Nasdaq closing sharply lower on Tuesday as vaccine optimism led investors away from market leaders and toward cyclical stocks associated with economic recovery.President Donald Trump and other top Republican lawmakers continued their refusal to concede the election to President-elect Joe Biden, delaying the transition of power and related policy shifts.
"Policy makers remain vigilant and monetary policy will err towards being very accommodative until a vaccine can be comprehensively rolled out," they wrote on Wednesday.European shares held near eight-month highs on Tuesday, riding a wave of optimism about a Covid-19 vaccine breakthrough, although concerns about the pandemic's economic damage capped gains.
"The reflation trade continues to work in earnest and the rotation to the unloved areas of the market continues," Chris Weston, Pepperstone's Melbourne-based head of research, wrote in a note on Wednesday.