Asian shares tallied a seven-week high record on Thursday, with earnings supported by positive results of a coronavirus vaccine trial. However, bonds and currencies traded cautiously ahead of a European central bank meeting set later on Thursday.
Gilead’s (GILD.O) antiviral remdesivir is set to be the standard of care for the deadly respiratory disease after encouraging results showed the vaccine’s ability to aid in fast recovery, said top U.S. infectious disease official Anthony Fauci.
The latest breakthrough boosted Wall Street on Wednesday, helping MSCI’s broadest index of Asia-Pacific shares with a 0.8% increase. The recent record came to be the highest level the index had reached since mid-March.
Japan’s Nikkei .N225 traded 2.5% stronger after a holiday on Wednesday, hitting a seven-week high record. Cautious trading activity was monitored in other asset classes as the U.S. dollar and U.S. futures remained unmoved.
With economic disruptions dragging the world economy to a slowdown, governments and central banks are compelled to release larger volumes of fiscal and monetary stimulus. This urged the European Central Bank to provide more support by expanding its bond purchase.