Asia links 19 Nov 2020: Vaccines, Chinese EV stocks, Tokyo Olympics
Insight #1 – A COVID-19 vaccine is highly bullish for cyclical stocks across Asia
Pfizer’s announcement about its COVID-19 vaccine having a 95% efficacy is bullish for cyclical stocks across Asia. Energy, materials, banks, property, insurance, retail, machinery, auto sectors will all benefit. A risk-on environment might also attract portfolio flows back to riskier emerging markets such as Indonesia and the Philippines. The timeline for mass distribution is unclear. Up to three vaccines could potentially be available by January. But it would take many months - perhaps even a year - for the logistics industry to build out the capacity to transport billions of doses of a vaccine at ultra-cold temperatures. By then, the virus might have died out anyway. The cost of $20-40/shot vaccines might also be out of reach for some individuals in the poorer parts of Asia.
Insight #2 – China’s EV sector could represent the short of a lifetime
Retail speculation across Asia and the United States has dri…