NZ shares rise as vaccine trial boosts global sentiment

The S&P/NZX 50 Index rose 116.38 points, or 1 percent, to 11,610.52. Within the index, 34 stocks rose and 16 fell. Turnover was $186.9 million.

The experimental vaccine, developed by biotech company Moderna, safely induced an immune response against covid-19 in all 45 participants, researchers reported in The New England Journal of Medicine. Moderna has now announced that a phase 3 test of the vaccine, involving 30,000 people, will begin on July 27 and be completed by late October.

The news helped to spur a rally on equity markets as investors hoped the vaccine would pave the way for fast economic recovery from the virus-induced recession.

Stephen Innes, global market strategist at AxiCorp, said a vaccine would be “the ultimate recession stopper” and reports of progress overwhelmed any negative sentiment from the rising number of virus cases in the United States.