Yahoo Finanza Asia-Pacific Shares Boosted by COVID-19 Treatment Hopes; Cautious Tone Ahead of Powell Speech
The major Asia-Pacific stock indexes finished higher across the board on Monday led by a surge in newly listed stocks on China’s NASDAQ-style ChiNext, however, the gains suggest investors bought with caution as they continued to monitor developments on the coronavirus pandemic. Investors are also anticipating U.S. Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole central bankers’ symposium later in the week.
In the cash market on Monday, Japan’s Nikkei 225 Index settled at 22985.51, up 65.21 or +0.28%. Hong Kong’s Hang Seng Index finished at 25551.58, up 437.74 or +1.74% and South Korea’s KOSPI Index closed at 2329.83, up 25.24 or 1.10%.
China’s Shanghai Index settled at 3385.64, up 4.96 or +0.15% and Australia’s S&P/ASX 200 finished at 6129.60, up 18.40 or +0.30%.
ChiNext Finishes Higher
The ChiNext rose 2.251% to close at about 3,028.86. The first batch of firms listing on the NASDAQ-style board under its revised IPO system made their debut on Monday and saw staggering gains. Contec Medical Systems jumped more than 1,000% on the day while Ningbo KBE Electrical Technology surged more than 740%.
Under the new listing system, stocks on the ChiNext will be allowed to trade freely in the first five days from their debut. Following which, new regulations will allow stocks on the board to gain or lose up to 20% in a session, as compared with 10% previously.
Asian Stock Investors Pin Hopes on Coronavirus Treatment
Asian shares advanced for a second straight session on Monday, underpinned by coronavirus hopes after U.S. regulators authorized the use of blood plasma from recovered patients as a treatment option.
The announcement from the U.S. Food & Drug Administration of a so-called “emergency use authorization” came on the eve of the Republican National Convention, where Donald Trump will be nominated to lead his party for four more years.
Equity traders are pinning hopes on a report that the Trump administration is considering by-passing normal U.S. regulatory standards to fast-track an experimental coronavirus vaccine from the UK for use in America ahead of the presidential election.
Fed Chair Powell to Speak at Jackson Hole Symposium
Looming large over this week is a keenly anticipated address by Federal Reserve Chair Jerome Powell at the Kansas City Fed Jackson Hole symposium, where he will talk on the Fed’s monetary policy framework review.
Powell’s speech takes on more significance after the Fed disappointed investors last week. The Fed’s July meeting minutes last week barely made a mention of its policy outlook while failing to drop any hints of further accommodation by policymakers at their September 18 meeting.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
