Hong Kong: The market was mixed on Monday. Investors tried to maintain the initial rebound. The infection rate dropped. More good news about vaccines spread amid high valuations and inflation concerns.
While the United States is approaching 500,000 deaths, there is growing optimism that there is light at the end of the tunnel in the Covid-19 crisis as governments embark on immunisation programmes that will allow economies to reopen.
Expectations that President Joe Biden’s vast stimulus will be passed next month are also keeping spirits up, as a raft of data last week on factory and services activity indicated the financial hit to the United States and Europe might not be as bad as feared.
News that the Pfizer/BioNTech jab appeared to prevent nine in 10 people from getting the disease in Israel — which is the most advanced in its rollout — provided a positive background. Israeli officials also said the shot was 99 percent effective at preventing deaths from the disease.
Meanwhile, hopes for a wider distribution were given a lift after Pfizer said its drug could be stored in normal medical freezers instead of the ultra-cold conditions initially thought necessary.
Tokyo, Hong Kong, Singapore, Taipei and Jakarta rose, but Shanghai, Sydney, Seoul, Wellington and Manila all lost money.
The rally in the past few months seems to be worrying because traders worry that prices may have become too frothy.
More and more people worry that the expected recovery and Biden’s spending plan will trigger a surge in inflation, which may force the Fed to withdraw its loose monetary policy and record low interest rates, which have been key pillars for the past year. The market surged.