Asian stock markets followed Wall Street higher Thursday as hopes for development of a coronavirus vaccine competed with concern about rising U.S. infections.
The Shanghai Composite Index SHCOMP, +2.13% rose 0.7% and the Nikkei 225 NIK, +0.11% in Tokyo added 0.6%. The Hang Seng HSI, 2.34% in Hong Kong, reopening after a holiday, gained 1.5%. In South Korea, the Kospi 180721, +1.36% advanced 0.8% while Australia’s S&P/ASX 200 XJO, +1.65% added 1.1%. New Zealand NZ50GR, +1.34% , Singapore STI, 0.46% and Jakarta JAKIDX, 0.65% also rose.
Investors were encouraged after Pfizer PFE, +3.18% and BioNtech BNTX, -3.89% announced preliminary data from a vaccine test, one of a series being carried out by global developers.
At the same time, the populous states of California and Texas reported daily record highs in new cases.
“Vaccine hopes, while welcome, fall short of guaranteeing a V-shaped recovery,” said Mizuho Bank in a report.
On Wall Street, the benchmark S&P 500 index SPX, +0.50% rose 0.5% on Wednesday to 3,115.86, boosted by gains for technology companies.
The Dow Jones Industrial Average DJIA, -0.30% lost 0.3% to 25,734.97. The Nasdaq composite COMP, +0.95% , which is heavily weighted with technology companies, climbed 1% to a record 10,154.63.
Stock markets around the world roared back last quarter on hopes economies are pulling out of their deepest slump since the 1930s. Analysts warn, however, that prices might be rising too far and too fast to be supported by economic activity when infections are rising in the United States, Brazil and some other countries.
In the United States, a report on manufacturing showed activity returned to growth in June, a much better reading than the contraction economists expected.
Earlier, a separate report suggested private employers hired more workers than they cut in June.
“It is still a guessing game as to how the COVID-19 lingering impact will sustain,” said Jingyi Pan of IG in a report.
In China, two surveys this week showed manufacturing improved in June, adding to signs of a gradual recovery.
A similar survey for the 19-country eurozone showed manufacturing almost growing again after widespread shutdowns.
Analysts said that while the data pointed in the right direction, it shows that an economic recovery from the pandemic will be slow.
In energy markets, benchmark U.S. crude CLQ20, 0.75% lost 1 cent to $39.81 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 55 cents to settle at $39.82 on Wednesday. Brent crude BRNU20, 0.79% , the international price standard, gained 2 cents to $42.05 per barrel in London. The contract rose 76 cents the previous session to $42.03 a barrel.
The dollar USDJPY, 0.02% gained to 107.53 yen from Wednesday’s 107.49 yen.
