Asia-Pacific airline and casino stocks reacted to the news of development of a vaccine for coronavirus. There are also indications on Tuesday that the effect of the news is negative on the stay-at-home businesses shares, as the Asia-Pacific absorbs the news.
Pfizer and BioNTech vaccines are among the prominent successes in the race to develop a vaccine for the pandemic that has led to a global economic meltdown. Airlines and casinos have been adversely affected by a near-global lockdown meant to curb spread of the disease.
Citi Private Bank’s Chief Investment Officer, David Bailin told CNBC that with the vaccine in place, there would be a turnaround from the isolationist approach to prevention. This would in turn impact positively on the stock of the industries hitherto affected by the global lockdown.
“Your hotel stocks, casinos, airlines, all of those really are … now back in play,” said Bailin.
Agatha Demarais of the Intelligence Unit of The Economist had a similar opinion. According to her, the development of a vaccine from Pfizer would have a positive impact on the stuttering global economies, although she maintained that there is still need for caution since the worst may not yet be over.
It is obvious to many market watchers that a coronavirus vaccine would herald a recovery and they have not minced words on that. Some of the Asia-Pacific airlines that received a boost at the news are Cathay Pacific which rose by 14.06%. Quantas was boosted by 8.33% while China Eastern Airlines spiked by 7.93%. Japan Airlines, 21.21%. Korean Airlines, Singapore Airlines and ANA Holdings gained 11.24%, 13.99% and 18.06% respectively.
Casino stocks that were impacted by the news in the region are Wynn Macau of Hong Kong that gained 9.95%. Melco International Development gained 6.84% while in Australia, Crown Resort gained 4.6%.
The oil sector also received a boost from the vaccine news, with Santos gaining 12.18% in Australia. Japan Petroleum Exploration made gains of 4.61% while PetroChina saw gains of 6.44%. CNOOC gained 13.96%.
