Asian stocks rise after Wall Street hits new high

BEIJING (AP) — Asian stock markets rose Monday on 2021’s first trading day, boosted by optimism about the rollout of coronavirus vaccines after Wall Street ended the year on a new high.

Market benchmarks in Shanghai, Hong Kong, Seoul and Sydney advanced. Tokyo declined.

Optimism about vaccines has countered concern about rising infection numbers in the United States and some other countries and conflict over economic aid in Washington, said Stephen Innes of Axi in a report.

Traders are “perhaps a bit over-eager” but believe vaccines will “provide the ultimate economic kick-start, offering a massive booster shot to corporate profits,” said Innes.

The Shanghai Composite Index gained 0.3% to 3,481.98 and the Hang Seng in Hong Kong gained 0.3% to 27,308.63.

The Nikkei 225 in Tokyo was off 0.4% at 27,344.87 after Prime Minister Yoshihide Suga announced the government is considering declaring a state of emergency for Tokyo and three surrounding prefectures due to surging virus caseloads. Suga asked restaurants and bars to close by 8 p.m. and said it would be difficult to restart a controversial travel promotion program that was suspended last month. He also said the government would expedite approval of coronavirus vaccines and begin providing injections in February.

The Kospi in Seoul rose 2% to 2,930.38 and Sydney’s S&P-ASX 200 added 0.2% to 6,661.10. Singapore and Jakarta also advanced.

On Wall Street, the benchmark S&P 500 index rose 0.6% to a high of 3,756.07 on Thursday, its final trading day of 2020. It ended the year up 16.3%, or a total return of about 18.4% with dividends.

The Dow Jones Industrial Average rose 0.7% to a record 30,606.48. The Nasdaq composite added 0.1% to 12,888.28.

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