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Shares in Asia rose Thursday afternoon after positive developments overnight in a possible new treatment for Covid-19.
Shares in Japan, which returned to trading after a holiday on Wednesday, led gains regionally. The Nikkei 225 rose 2.9% as robot maker Fanuc’s shares soared about 8%. The Topix index also rose 1.81%.
Mainland Chinese shares rose in the afternoon, with the Shanghai compound 1.3% while the Shenzhen compound added 1.867%.
The S & P / ASX 200 in Australia also increased 2.25%.
Overall, the MSCI Asia ex-Japan Index increased 1.3%.
In corporate earnings, the DBS Group of Singapore posted a 29% year-over-year drop in its first quarter net profit. The bank’s shares rose more than 4% in the afternoon.
The markets in Hong Kong and South Korea are closed on Thursday for holidays.
Investors noted the market reaction to developments overnight regarding the use of Gilead Sciences’ antiviral drug remdesivir as a possible new treatment for Covid-19 patients.
Gilead Sciences said Wednesday that preliminary results from a coronavirus drug trial showed that at least 50% of patients treated with a five-day dose of remdesivir improved and more than half were discharged from the hospital in two weeks.
Later Wednesday, White House health adviser Dr. Anthony Fauci said the NIAID remdesivir drug trial, which enrolled about 800 patients, showed “very good news” and that the drug would establish a new Covid-19 standard of care for patients.
Globally, the coronavirus pandemic has infected more than 3.1 million and claimed at least 226,771 lives, according to data compiled by John Hopkins University.
Release of manufacturing data in China
On the economic data front, China said manufacturing activity in the country expanded slightly in April. The official manufacturing purchasing managers index for April reached 50.8, compared to 52.0 in March. PMI readings above 50 signify expansion, while those below that mark indicate contraction. Analysts in a Reuters poll expected the official manufacturing PMI for April to hit 51.0.
A subsequent private survey also released Thursday, on the other hand, showed that manufacturing activity in April contracted. The Caixin / Markit manufacturing PMI for April hit 49.4, below expectations of a 50.3 reading by analysts in a Reuters poll.
Investors looked at China’s economic data for new clues as to whether the country’s economy is recovering after a poor first-quarter GDP impression as the country struggled with the coronavirus outbreak.
Central bank clock
Meanwhile, the US Federal Reserve. USA He pledged on Wednesday to keep rates close to zero for as long as necessary and to provide additional aid to the economy.
Looking ahead, the European Central Bank (ECB) will also announce its interest rate decision at 7:45 p.m. HK / SIN on Thursday.
“I don’t think the market is really expecting a lot to come out of the ECB tonight,” Craig Chan, head of global currency exchange strategy at Nomura, told CNBC’s “Street Signs” on Thursday.
“We expect a 20 basis point reduction in the deposit rate,” Chan said. “I would also say that there is some risk that we can also see asset purchases increase.”
Oil prices rise
Oil prices were higher in the late Asian trading hours, with the Brent Crude Oil International Benchmark Index gaining 10.47% at $ 24.90 a barrel. US crude oil futures also added 14.81% to $ 17.29 a barrel.
The US Dollar Index, which tracks the dollar against a basket of its peers, was last at 99,584 after seeing levels above 100 earlier this week.
The Japanese yen was trading at 106.56 per dollar, stronger than the levels above 107 seen earlier in the trading week. The Australian dollar was at $ 0.6557 after rising from levels below $ 0.648 seen earlier this week.
– CNBC’s Fred Imbert and Berkeley Lovelace Jr. contributed to this report.
Correction: This report was updated to reflect that the South Korean markets were closed on Thursday.
