By Gina Lee
Investing.com – Asian stocks were mixed on Wednesday morning, retreating from their gains on Tuesday.
Investors digested a report from several vaccine experts that said that U.S. drug maker Moderna (NASDAQ:MRNA) provided insufficient information to determine how effective its potential vaccine for the COVID-19 virus actually is.
Moderna’s Monday announcement that its vaccine appeared to be generating an immune response in all its 45 trial participants, boosted stocks on Tuesday. But the experts warned that the announcement should be taken “with a big grain of salt.”
Meanwhile, China’s central bank left both the 1-year loan prime rate and the 5-year loan prime rate unchanged at 3.85%, and 4.65% respectively.
China’s Shanghai Composite was down 0.45% and the Shenzhen Component was down 0.37% by 11:37 PM ET (4:37 AM GMT), with U.S.-China tensions continuing to simmer in the background.
The country's National People’s Congress will kick off on Friday after a two-month delay due to COVID-19.
Hong Kong’s Hang Seng Index was down 0.12%, giving up some of its earlier gains, and Japan’s Nikkei 225 rose 0.96%.
The Reuters Tankan survey showed that Japanese business confidence hit decade lows in May, with firms bracing for a protracted period of economic turmoil due to COVID-19.
South Korea’s KOSPI gained 0.21%, even with the country struggling to contain its second wave of cases originating in nightclubs around Seoul’s Itaewon neighborhood. 32 new cases were reported on Tuesday, the most since May 11, and brings the total number of cases in the country to 11,110.
But Korean high school seniors returned to their classrooms today as schools started a reopening program in stages.
Down Under, the ASX 200 rose 0.06%, slowly reversing its earlier losses.
As Moderna's announcement damped investor sentiment, some investors cautiously held onto the small hope of an economic recovery.
“We are being fairly cautious,” Shawn Matthews, founder and chief investment officer at Hondius Capital Management LP, told Bloomberg.
But he added, “If you look at the economy, it feels like it’s the summer of hope right now, where everyone is hoping it’s going to turn around.”