Japan stocks set to rise after overnight Dow surge following positive coronavirus vaccine development

  • Investor focus on Tuesday will likely be on Pfizer and BioNTech's Monday announcement that their coronavirus vaccine was more than 90% effective in preventing Covid-19 among those without evidence of prior infection.
  • China's consumer price index and producer price index for October are set to be out at around 9:30 a.m. HK/SIN.

SINGAPORE — Stocks in Japan were set to trade higher at the open as investors in Asia-Pacific react to positive developments overnight on the coronavirus vaccine front.

Futures pointed to a higher open for Japanese stocks. The Nikkei futures contract in Chicago was at 25,400 while its counterpart in Osaka was at 25,570. That compared against the Nikkei 225's last close at 24,839.84.

Shares in Australia jumped in early trade, as the S&P/ASX 200 rose more than 2%.

On the economic data front, China's consumer price index and producer price index for October are set to be out at around 9:30 a.m. HK/SIN.

Pfizer vaccine hopes

Investor focus on Tuesday will likely be on Pfizer and BioNTech's Monday announcement that their coronavirus vaccine was more than 90% effective in preventing Covid-19 among those without evidence of prior infection.

The reported efficacy rate was higher than expected, with scientists hoping for a coronavirus vaccine that is at least 75% effective, while White House coronavirus advisor Dr. Anthony Fauci has said one that is 50% or 60% effective would be acceptable.

Markets stateside surged on that news. The Dow Jones Industrial Average closed 834.57 points higher at 29,157.97 — its biggest one-day gain since June 5. The S&P 500 gained 1.2% to finish its trading day at 3,550.50. The Nasdaq Composite, on the other hand, slipped 1.5% to close at 11,713.78.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.829 following an earlier rise from levels below 92.4.

The Japanese yen traded at 105.26 per dollar after weakening sharply from levels below 104.3 against the greenback yesterday. The Australian dollar changed hands at $0.7279 following its rise last week from levels below $0.72.

— CNBC's Sam Meredith contributed to this report.

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