Asian stocks and US futures run out of steam

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Hong Kong Hang Seng Index (HSI) gained 0.4%, losing some of the momentum it had built up earlier in the morning. From Japan Nikkei 225 (N225) rose 0.5%, also offsetting earlier gains.
South Korea Kospi (KOSPI) was up 0.2%. But China Shanghai Composite (SHCOMP) lost 0.5%, down from the initial gains.
The market rally weakens after the Dow Jones Industrial Index (UNDUE) Monday finished up nearly 3%, or 835 points, while the widest S&P 500 (SPX) finished up 1.2%. the Nasdaq composite (COMP) fell behind, closing down 1.5%.

Wall Street futures contracts also lost strength overnight. Dow futures fell 173 points, or 0.6%, S&P 500 futures fell 0.6%, and Nasdaq futures fell 0.8%.

Shares shot up on Monday as drug maker Pfizer announced that an initial review of data from its Covid-19 vaccine, carried out with its German partner BioNTech, shows it to be 90% effective. Investors have also reacted positively to greater political certainty after Joe Biden’s victory in the US presidential election.

“Investors have been patiently awaiting news of any breakthrough in vaccine development and last night that patience paid off,” said Tai Hui, chief Asian market strategist for JP Morgan Asset Management. But he added that any effective vaccine would still be months away from mass deployment.

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Shanghai-based Fosun Pharma, which has a deal with BioNTech to distribute coronavirus vaccines, jumped 14% in Hong Kong on Tuesday. The stock also rose 10% in Shanghai, the maximum daily limit allowed there.

Billionaire founder Guo Guangchang praised the positive vaccine news Monday night on Chinese social media website Weibo, calling it a “victory for science and victory for global cooperation.”

Guo added that he hoped a vaccine could be launched in China as soon as possible, and said Fosun would continue to speak to Chinese regulators.

Tech stocks in Asia fell on Tuesday, following the lead of the Nasdaq. Tech stocks in the Nikkei fell an average of 1.6%, according to data compiled by Refinitiv. The Hang Seng Tech Index – which tracks Hong Kong’s top 30 tech stocks – fell 5.5%.

Investors could heed expectations that demand for certain technology products and services will slow as employees gradually return to the office, according to JP Morgan’s Hui.

– CNN’s Nadia Kounang and Anneken Tappe contributed to this report.

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