Asian stocks rally on Tuesday, STI up 0.29%

AGAINST the backdrop of positive vaccine developments and upbeat Chinese data, the benchmark Straits Times Index (STI) rebounded from the previous day's loss to close 0.29 per cent or 8.17 points higher at 2,814.12.

The results of a business survey released on Tuesday showed that activity in China's factory sector accelerated at the fastest pace in a decade in November.

On the vaccine front, Moderna on Monday said it is filing for US and European emergency regulatory approval of its coronavirus vaccine so that it can be recommended for widespread use.

Among the STI constituents, Yangzijiang Shipbuilding emerged top of the table, gaining 4.55 per cent or S$0.04 to close at S$0.92.

The company announced on Monday that it has signed agreements to build and deliver nine vessels worth about US$226 million.

Despite news of the deferment of the launch of the Singapore-Hong Kong air-travel bubble, shares of SIA ended the day in the black, inching up 0.92 per cent or S$0.04 to close at S$4.38.

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City Developments Limited came in last on the STI performance table, after announcing on Monday that it expects to fall into the red with a full-year loss this year, dragged by the prolonged impact of the coronavirus outbreak. The counter closed down 1.54 per cent or S$0.12 at S$7.68.

Advancers outnumbered decliners 250 to 197 for the day, with 2.35 billion securities worth S$1.34 billion changing hands.

Across the region, Asian markets similarly made gains on Tuesday. The Nikkei 225 Index gained 1.34 per cent or 353.92 points to end at 26,787.54; the benchmark Kospi closed 1.66 per cent or 42.91 points higher at 2,634.25.

The Hang Seng Index jumped 0.86 per cent or 226.19 points to 26,567.68, and the benchmark Shanghai Composite Index rose 1.77 per cent or 60.18 points to close at 3,451.94.

Olivier d'Assier, head of applied research for the Asia-Pacific at Qontigo, noted that last week's "large improvement in sentiment" for Asia ex-Japan helped markets "score their best months in several years".

He said: "At these levels, investors' cautious optimism seems more due to declining risk-aversion levels than rising risk-tolerance ones.

"As risk appetite recovers globally, we could see further gains for the traditional year-end rally."