Global shares rise as vaccine wait tempers Wall St optimism

France's CAC 40 added 0.2 per cent in early trading to 6,247.86 while Germany's DAX gained 0.6 per cent to 15,352.50. Britain's FTSE 100 rose 0.4 per cent to 7,013.48. US shares were set for a slow start, with Dow futures inching up less than 0.1 per cent at 33,925.0. S&P 500 futures fell 0.1 per cent to 4,159.90.

Jubilance over positive Chinese and US economic data and another record high on Wall Street was tempered by caution over coronavirus outbreaks in the region, where rollouts of the vaccine have lagged. Japan's benchmark Nikkei 225 gained 0.1 per cent to finish at 29,683.37. Australia's S&P/ASX 200 recouped earlier losses, rising 0.1 per cent to 7,063.50. South Korea's Kospi added 0.1 per cent to 3,198.62. Hong Kong's Hang Seng added 0.6 per cent to 28,969.71, while the Shanghai Composite gained 0.8 per cent to 3,426.62. The contrast between the speed of vaccine rollouts in the US and Asia has been striking. Nearly half of American adults have gotten at least one dose of the vaccine, and about 30 per cent of adults in the US have been fully vaccinated, according to the Centers for Disease Control and Prevention. Japan, where inoculations for the public have barely started, has seen a resurgence of infections in recent weeks. The country's western metropolis of Osaka reported more than 1,200 new infections Thursday, its highest since the pandemic began. A top ruling party official suggested the possibility of cancelling the Tokyo Olympics, set to start in July, if infections continue to surge. Japan decided on measures to stem the rise of infections for several additional areas, Kanagawa, Chiba and Saitama prefectures, near Tokyo, as well as Aichi in central Japan. Six areas, including major cities of Tokyo and Osaka, were already under such measures, which has restaurants closing at 8 pm The government is also asking people to social distance and avoid gathering in crowds. Prakash Sakpal and Nicholas Mapa, senior economists for ING, said the markets are awaiting the outcome of a meeting between Japanese Prime Minister Yoshihide Suga and President Joe Biden, set for the weekend. China's economy expanded at a sizzling annual pace of 18.3 per cent in the first quarter of the year. But its rebound in factory and consumer activity following the coronavirus pandemic is leveling off, according to data released Friday. The figures were magnified by comparison with early 2020, when China suffered its deepest contraction in decades. Investors are welcoming a raft of encouraging economic reports showing how hungry Americans are to spend again, how fewer workers are losing their jobs and how much fatter corporate profits are getting. Expectations are very high on Wall Street that the economy — and thus corporate profits — are rebounding thanks to COVID-19 vaccinations and massive support from the US government and Federal Reserve. New data on retail sales and jobless claims Thursday reinforced the view that the recovery is accelerating. Much of the surge in the US was due to USD 1,400 payments from the US government's latest economic rescue effort hitting households' bank accounts. Economists said that shows how primed people are to spend as the economy reopens and conditions brighten. That's huge for an economy that's made up mostly of consumer spending.

An encouraging read on the job market showed 576,000 people applied for unemployment benefits last week, well below the 700,000 that economists had forecast and down from 769,000 the prior week. It's also the lowest number since the pandemic began.

Adding to the optimism, more big US companies reported even healthier profits for the first three months of 2021 than analysts had forecast.