New vaccine, lower yields give equities a shot in arm

SINGAPORE (THE BUSINESS TIMES) - Key regional markets rose as yields dropped and a new, single-shot vaccine against Covid-19 was authorised in the United States over the weekend. Singapore's blue-chip barometer the Straits Times Index (STI) closed Monday's trading at 2,973, up 0.81 per cent or 23.96 points.

Japan's Nikkei 225 Index was 2.41 per cent higher at 29,663.50 while Australia's S&P/ASX 200 gained about 1.74 per cent to 6,789.55 points, also bolstered by upbeat economic data and the central bank's upsized daily quantitative easing programme.

Hong Kong's Hang Seng Index was up 1.63 per cent at 29,452.57 points while the neighbouring Shanghai Composite Index ascended 1.21 per cent to 3,551.40 points.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index, however, logged a 0.67 per cent fall to 1,567.14 points.

Stephen Innes, chief global markets strategist at Axi, pointed to lower yields as the trigger for a risk market recovery, while Jeffrey Halley, senior market analyst at Oanda, wrote in a report on Monday that "vaccine hopes steady the ship".

Singapore's aviation-related players benefited from the vaccine news, with flag carrier Singapore Airlines (SIA) flying 5.22 per cent higher to S$5.24, ST Engineering up 3.99 per cent to S$3.91, SIA Engineering rising 4.41 per cent to S$2.13, and ground-handler and inflight caterer Sats lifting 1.82 per cent to S$4.48.

By contrast, Malaysian glove maker Top Glove slipped 5.59 per cent to S$1.69, making it one of the biggest losers by value.

Gainers outnumbered decliners 262 to 236 on the broader market, on trade of 2.30 billion securities worth S$1.65 billion.

South Korea markets were closed on Monday for a public holiday.