Stocks in Asia were set to trade higher on Wednesday as hopes for a coronavirus vaccine rise.
Futures pointed to a higher open for Japanese stocks, with the Nikkei futures contract in Chicago at 22,890 while its counterpart in Osaka was at 22,710. That compared against the Nikkei 225’s last close at 22,587.01.
Shares in Australia were set to open little changed. The SPI futures contract was at 5,941, as compared to the S&P/ASX 200’s last close at 5,941.10.
Investors on Wednesday will watch for reaction to the latest developments surrounding a potential vaccine for the coronavirus. Biotech firm Moderna‘s potential vaccine to prevent Covid-19 produced a “robust” immune response, or neutralizing antibodies, in all 45 patients in its early stage human trial, according to newly released data published in the peer-reviewed New England Journal of Medicine.
Still, tensions between Washington and Beijing could weigh on investor sentiment. U.S. President Donald Trump on Tuesday said he signed legislation to impose sanctions on China in response to its interference with Hong Kong’s autonomy. Trump also said he signed an executive order ending Hong Kong’s special status with the U.S.
Meanwhile, the Bank of Japan is poised to release its outlook report at around 11:00 a.m. HK/SIN on Wednesday.
“The Bank of Japan is expected to leave monetary policy unchanged today,” Joseph Capurso, head of international economics at Commonwealth Bank of Australia, wrote in a note.
“Monetary policy settings in Japan were already extremely easy prior to the coronavirus pandemic,” Capurso said. “Looser monetary policy is unlikely to make much difference to Japan’s recovery in our view.”
Overnight stateside, the Dow Jones Industrial Average closed 556.79 points higher, or 2.1%, at 26,642.59. The S&P 500 finished its trading day 1.3% higher at 3,197.52 while the Nasdaq Composite closed nearly 1% higher at 10,488.58.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 96.259 after slipping from levels above 96.6 seen earlier.
The Japanese yen traded at 107.26 per dollar after touching levels around 107.4 against the greenback yesterday. The Australian dollar changed hands at $0.6985 after rising from levels below $0.694 yesterday.
Here’s a look at what’s on tap:
- Japan: Bank of Japan’s outlook report at around 11:00 a.m. HK/SIN
Source: CNBC