'Vaccine Breeze' Excites Stock Market... Surpasses 1980 Level After Two Months

Recovery of Investment Sentiment with Progress in COVID-19 Vaccine Development
KOSPI Rises Over 2% Intraday... Asian Markets Including China and Japan Also Gain

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Expectations for the development of a treatment for the novel coronavirus infection (COVID-19) are bringing a positive breeze to domestic and international stock markets. Following nearly a 4% rise in the New York stock market overnight, the domestic KOSPI index also showed an intraday increase of more than 2%.

As of 11:30 a.m. on the 19th, the KOSPI index recorded 1974.87, up 1.95% (37.87 points) from the previous day. Shortly after the market opened, at around 9:06 a.m., it rose to 1980.84. This is the first time in over two months since March 9 that the KOSPI has surpassed the 1980 level.

Major Asian stock markets are also on the rise. On this day, the Shanghai Composite Index in China started trading at 2897.69, up 0.77% from the previous trading day. In the Tokyo stock market, the Nikkei 225 index opened at 20,469.52, up 1.6% (335.79 points) from the previous day.

The COVID-19 'vaccine breeze' that boosted the U.S. and European stock markets appears to be continuing in domestic and Asian markets as well. Earlier on the 18th (local time), the Dow Jones Industrial Average in New York closed at 24,597.37, up 3.85% (911.95 points). The S&P 500 index and the tech-heavy Nasdaq index also closed up 3.15% and 2.44%, respectively. The Dow and S&P indices showed their largest gains since early last month.

Major European stock markets also rose across the board. The UK FTSE 100 index closed up 4.29% at 6,048.59. Germany's DAX index rose 5.67% to 11,058.87, and France's CAC 40 index closed up 5.16% at 4,498.34.

The global stock market rebound is interpreted as a result of countries around the world resuming economic activities and progress in vaccine development, which revived investor sentiment. In particular, on this day, the U.S. biotech company Moderna succeeded in releasing results of 'antibody formation,' indicating immunity, in its COVID-19 vaccine clinical trials. Moderna's stock price surged about 20% on the Nasdaq. Additionally, with over 100 COVID-19 vaccines under development worldwide, expectations for overcoming COVID-19 have increased.

Meanwhile, the Korean won to U.S. dollar exchange rate plunged this morning. As of 11:30 a.m., the won-dollar exchange rate was 1,223.9 won, down 8.5 won from the previous day's closing price. After starting at 1,224.5 won, down 7.9 won, the decline widened, fluctuating in the low 1,220 won range. As the development of COVID-19 vaccines and treatments accelerates, risk asset preference, including emerging market currencies and stocks, has strengthened.

In the domestic stock market, travel and airline stocks, which had been sluggish due to the economic slowdown caused by COVID-19, rose sharply. As of 11:30 a.m., Jeju Air recorded 19,350 won, up 9.32% from the previous day. At the same time, Jin Air (9.21%), T'way Air (8.16%), Korean Air (7.20%), and Asiana Airlines (5.48%) were all on the rise. Travel stocks such as Hana Tour (8.59%), leisure-related stocks like Kangwon Land (4.37%), and CJ CGV (4.55%) also increased.

This content was produced with the assistance of AI translation services.