By Gina Lee
Investing.com – Asian stocks were on the rise after U.S. biotechnology company Novavax (NASDAQ:NVAX) raised hopes for a vaccine for the COVID-19 virus.
The company has started clinical trials for vaccine and targets preliminary results by July. Phase 2 of the trial will start once phase one is successfully completed, and is expected to take place in several countries including the U.S.
“Administering our vaccine in the first participants of this clinical trial is a significant achievement, bringing us one step closer toward addressing the fundamental need for a vaccine in the fight against the global COVID‑19 pandemic.” Novavax's CEO Stanely C. Erck said in a statement.
The news helped to improve investor sentiment, unnerved by rising U.S.-China tensions in the aftermath of a proposed national security law for Hong Kong and Macau.
Sentiment was also boosted as lockdown measures continue to be loosened globally and governments attempt to undo the virus’ economic damage.
Japan’s Nikkei 225 led the gains, jumped 2.07% by 10:24 PM ET (3:24 AM GMT). Japanese shares reached a ten-year high after the states of emergency was lifted for the last five prefectures, including Tokyo.
"U.S.-China tensions continue to simmer in the background, but equity investors appear more interested on the prospect of economies reopening around the globe," said Rodrigo Catril, a senior FX strategist at NAB, told Reuters.
"On this score, Japan ended its nationwide state of emergency, Spaniards have returned to bars in Madrid wearing masks and England will reopen some businesses on June 1."
South Korea’s KOSPI gained 1.15% and the ASX 200 rose 1.83%.
Hong Kong’s Hang Seng Index was up by 1.75%. China’s Shanghai Composite was up 0.65% and the Shenzhen Component was up 1.15% as investors continue to monitor the National People’s Congress for clues on the second-largest economy’s COVID-19 recovery.
Meanwhile, investors will also be looking at U.S. Federal Reserve Chair Jerome Powell’s participation in a virtual discussion on Friday for clues on further Fed stimulus measures.