Stocks rally on vaccine development

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    HONG KONG/BOSTON- Asian share markets mostly shot higher on Tuesday driven by regional airline, tourism and travel stocks as global investors applauded progress in the development of a coronavirus vaccine which lifted confidence in a world economic recovery.

    Pfizer Inc said its COVID-19 vaccine, developed with German partner BioNTech SE, was more than 90 percent effective in preventing infection, marking the first successful results from a large-scale clinical trial.

    “Markets will remain on the lookout for more promising vaccine data in addition to news of a fiscal reboot,” PineBridge Investments portfolio manager Mary Nicola told Reuters.

    The vaccine news sparked renewed optimism in equities around the world but oil prices slipped in Asian trade after posting the biggest one-day percentage gain in five months.

    However, some analysts sounded caution over the speed in which the vaccine could be implemented.

    “Given more tests are needed, then the approval process. Manufacturing and distribution would mean the vaccine, if truly effective, is still months away from mass deployment,” said Tai Hui, chief Asia market strategist at JPMorgan Asset Management.

    Brazil’s health regulator said on Monday it had suspended clinical trials for China’s Sinovac coronavirus vaccine after adverse effects had emerged.

    Japan’s Nikkei 225 rose 1.1 percent after reaching a 29-year high in early trade and Australia’s S&P/ASX 200 rose 1.6 percent.