Asian shares slip on faltering hopes for COVID vaccines
Stocks fell back across Asia on Thursday after gains for big technology shares pushed most Wall Street benchmarks higher. U.S. futures also declined.
Excitement over news of potentially effective vaccines for COVID-19 has been tempered by concerns over the logistical challenges of ensuring access to billions of people. Meanwhile, caseloads are rising, leading governments to re-instate restrictions on business and other activities to battle the pandemic.
“Vaccine trades reversed to give way to ‘stay home' trades," as shares of technology companies and others that do well when people stay home and work remotely rallied, Mizuho Bank said in a commentary. But it added, “Fact of the matter is, progress on vaccine development is at worst two steps forward one step back, and not one step forward and two steps back on a sustained basis."
Tokyo's Nikkei 225 index gained 0.7% to 25,520.88 despite a report that machinery orders fell in September, suggesting weakness in corporate investment. The benchmark has been trading near 30-year highs despite a resurgence of COVID-19 cases that has officials urging people to stay home over the holidays.
The mood was more somber elsewhere in Asia.
Hong Kong's Hang Seng index fell 0.3% to 26,145.30 and the Shanghai Composite index declined 0.2% to 3,334.20. In Seoul, the Kospi gave up 0.2% to 2,480.10. Australia's S&P/ASX 200 slipped 0.5% to 6418.20.
Overnight, the Dow Jones Industrial Average edged 0.1% lower, to 29,397.63, dragged back by weaker prices for companies like American Express and Walt Disney, that had shot up this week after news of a potentially successful vaccine sent travel, entertainment and tourism companies surging.
The Dow declined shortly after news crossed that New York would put restrictions on bars,...
