Asia-Pacific stocks mixed as investors react to positive coronavirus vaccine development; airline shares soar

SINGAPORE — Airline stocks in Asia-Pacific soared on Tuesday morning, while markets in the region traded mixed as investors in the region reacted to positive developments overnight on the coronavirus vaccine front.

In Japan, the Nikkei 225 rose 1.19% while the Topix index gained 1.74%. Over in South Korea, the Kospi was about 0.3% higher.

Mainland Chinese stocks were mixed: The Shanghai composite was 0.16% higher while the Shenzhen component shed 0.905%.

China’s consumer price index rose 0.5% in October from a year ago, according to data from the country’s National Bureau of Statistics, as compared to expectations for a 0.8% increase in a Reuters poll. The producer price index for China declined 2.1% year-on-year in October, close to expectations in a Reuters poll of a 2% slip.

Hong Kong’s Hang Seng index added 1.25%. Shares in Australia also advanced, as the S&P/ASX 200 rose 1.48%. In Southeast Asia, the Straits Times index in Singapore jumped 3.02%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.15% higher.

Shares of airlines in Asia-Pacific surged in Tuesday trade. The sector has been among those hardest hit by the coronavirus pandemic as a result of travel restrictions.

In Australia, Qantas gained 9.19%. Over in Hong Kong, shares of Cathay Pacific popped 16.55% while China Eastern Airlines rose 7.32%. Japan Airlines also saw its stock in Japan surge 17.85% while ANA Holdings advanced 14.69%. South Korea’s Korean Air Lines added 13.3% while Singapore Airlines shares in Singapore soared 14.58%.

Investor focus on Tuesday was likely 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.