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Asian shares surge after vaccine supply increase to Europe

On Sunday, the EU announced AstraZeneca has agreed to supply 9 million additional doses of its coronavirus vaccine to Europe

twitter-logoAssociated Press | February 1, 2021 | Updated 11:30 IST
On Sunday, the EU announced AstraZeneca has agreed to supply 9 million additional doses of its coronavirus vaccine to Europe
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Asian stock markets gained Monday after coronavirus vaccine maker AstraZeneca agreed to increase supplies to Europe amid rising worries about the disease.

Tokyo, Hong Kong and Seoul advanced. Shanghai declined after surveys showed Chinese manufacturing weakened in January.

On Friday, Wall Street's benchmark S&P 500 index lost 1.9% after GameStop, a video game vendor, and some other shares that were expected to decline were sent soaring by day traders. Other investors said hedge funds that bet against those stocks were losing money and selling other shares.

Markets were rattled by AstraZeneca's announcement it would supply the European Union with fewer than half the promised doses. That prompted the EU to impose export controls. On Sunday, AstraZeneca promised to increase European supplies and start delivery earlier.

"Concerns around the pandemic seemed to return in full force as vaccine distribution and efficacy issues re-emerged even with the virus spread gaining momentum," said Mizuho Bank in a report.

The Nikkei 225 in Tokyo gained 0.9% to 27,905.26 and the Hang Seng in Hong Kong advanced 0.8% to 28,527.85. The Kospi in Seoul added 1.7% to 3,027.10.

The Shanghai Composite Index skidded 0.3% to 3,471.17 after two surveys showed growth in Chinese manufacturing decelerated in January.

A purchasing managers' index issued by business magazine Caixin declined to 51.5 from December's 53 on a 100-point scale on which numbers above 50 reflect activity expanding. A separate PMI by the official statistics agency showed similar weakening.

The data suggest China's rebound "is levelling off," said Julian Evans-Pritchard of Capital Economics in a report.

Investors have bid up stocks in expectation the rollout of coronavirus vaccines would allow global business and travel to return to normal. But that optimism has been dented by new infection spikes and disruptions in vaccine deliveries.

On Sunday, the EU announced AstraZeneca has agreed to supply 9 million additional doses of its coronavirus vaccine to Europe.

The new target of 40 million doses by the end of March is still only half what the British-Swedish company had originally aimed for before it announced a shortfall due to production problems. The EU is behind the United States in vaccinating its 450 million people.

On Wall Street, anxiety mounted over struggle between hedge funds and day traders over GameStop, AMC Entertainment and a handful of other stocks.

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