- Investor buy risk on prospects of an early rollout of coronavirus vaccines.
- COVID-19 shots could reach first Americans by mid-Dec, according to top health official.
Asian stocks advanced on Monday, with the Shanghai Composite index reaching the highest point since early September, as investors shrugged off rising coronavirus cases and cheered prospects of an early launch of vaccines.
Australia’s S&P/ASX 200 gained over 0.5%, and the Shanghai Composite rose over 0.8%. In South Korea, New Zealand, and India, stocks scored moderate gains alongside a 0.3% rise in the S&P 500 futures. Elsewhere, gold, a classic haven asset, traded flat around $1,870 per ounce and the dollar index dipped over 0.1% to 92.21.
Vaccinations against Covid-19 in the US may begin in three weeks, as the FDA is looking to approve drugmaker Pfizer and German partner BioNTech’s experimental candidate in mid-December. Britain is likely to give a green signal to Pfizer’s vaccine this week.
The month of November has brought good news in the form of positive results of vaccine trials, triggering hopes for a swift economic recovery in 2021 and cushioning risk assets against a resurgence of infections worldwide and negative effects of the lockdown restrictions imposed in major nations like Germany and France.
Besides, the US Congress’ inability to deliver additional fiscal stimulus has boosted speculation of more monetary easing from the Federal Reserve when it meets in December.
Traders are likely to scan the Federal Reserve’s last meeting minutes, due this Wednesday, for clues regarding additional stimulus.
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