Japan Market rises on vaccine hopes, weaker yen

Japan share market finished session sharp higher on Tuesday, 01 December 2020, driven by hopes for expedited access to a coronavirus vaccine after US drug maker Moderna filed for US and European approval of its virus vaccine. Meanwhile, positive sentiment also generated by the yen's weakness against the U.S. dollar and positive China economic data.

At closing bell, the 225-issue Nikkei Stock Average advanced 353.92 points, or 1.34%, to 26,787.54. The broader Topix index of all First Section issues on the Tokyo Stock Exchange grew 13.46 points, or 0.77%, to 1,768.38.

Tokyo stocks commenced trading with firm footing after US pharmaceutical firm Moderna said it was asking the US and European authorities to approve its coronavirus vaccine. Moderna reported full results had confirmed a high vaccine efficacy rate, estimated at 94.1 per cent, and said it was filing Monday for emergency authorisation in the United States and Europe. It was set to join American pharmaceuticals maker Pfizer and Germany's BioNTech, which applied for similar approvals last week and have predicted their vaccine could be available in the US shortly after December 10. If the FDA agrees Moderna's product is safe and effective, the first of the drug's two doses could begin being administered to Americans by the middle of December. Moderna has agreed with the Japanese government to provide more than 40 million shots from early next year through Japan's Takeda Pharmaceutical.

 

ECONOMIC NEWS: Japan Manufacturing PMI Stays In Contraction In November- Japan manufacturing sector continued to contract in November, with a manufacturing PMI score of 49.0, the latest survey from Jibun bank revealed on Tuesday. That's up from 48.7 in October although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. Individually, operating conditions deteriorated only slightly in November, while there were softer falls in both output and new orders. Employment levels continued to decrease in November, although at a slightly softer pace.

CURRENCY NEWS: The U.S. dollar held firm in the lower 104 yen zone as vaccine expectations grew after the U.S. biotech company Moderna Inc. said it will ask U.S. and European regulators Monday to allow emergency use of its COVID-19 vaccine following encouraging study results. The dollar fetched 104.35-36 yen compared with 104.29-39 yen in New York and 104.02-04 yen in Tokyo at 5 p.m. Monday.

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