Reuters, Hong Kong

Asian share markets mostly rose on Tuesday as global investors applauded successful trial data for a coronavirus vaccine, although expected delays to any mass roll-out took the gloss off early gains.

European futures trading during the Asian session were indicating a weaker open of at least 1.2 per cent, while US futures showed a potential fall of at least 0.5 per cent after Monday’s steep market gains.

The positive tone in Asian equities came after Pfizer Inc said its COVID-19 vaccine, developed with German partner BioNTech, was more than 90 per cent effective in preventing infection, marking the first successful results from a large-scale clinical trial. Major Asian markets soared on the vaccine news before weakening later in the session.

Japan’s Nikkei ended up nearly 0.3 per cent after being 1.1 per cent higher in early trading, touching a 29-year high. Australia’s S&P/ASX 200 closed 0.66 per cent higher after trading up as much as 1.6 per cent, while Hong Kong’s Hang Seng index was at 0.77 per cent in the afternoon after rising 1 per cent in early trade.

Singapore’s Straits Times gained 2.94 per cent to take the index to its highest point since June.

Despite the optimistic tone across the region, there was some weakness in China, with the CSI300 Index slipping 0.17 per cent.

Analysts attributed the decline to the heavy exposure of China’s indices to tech stocks, which came under pressure as investors eyed less consumer reliance on technology if a vaccine leads to an easing of movement restrictions.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.1 per cent higher.

“The market is looking forward to a more sustained solution to the pandemic and that is why we have seen such a sharp reaction,” said Tai Hui, chief Asia market strategist at JPMorgan Asset Management

However, he sounded caution over the speed in which the vaccine could be implemented.

“Given more tests are needed, then the approval process. Manufacturing and distribution would mean the vaccine, if truly effective, is still months away from mass deployment.”