Asian shares rise on hopes for drug to treat coronavirus

TOKYO (AP) — Asian shares advanced on Thursday, riding a wave of optimism about a possible treatment for the coronavirus that set off a rally on Wall Street powerful enough to override data showing the U.S. economy had logged its worst quarterly performance since 2009.

Japan's benchmark Nikkei 225 surged 2.1% to finish at 20,193.69, while Australia's S&P/ASX 200 gained 2.4% to 5,522.40. The Shanghai Composite added 1.3% to 2,859.56. Markets in South Korea and Hong Kong were closed for holidays.

India's Sensex gained 3% to 33,700.35. Markets in Taiwan and Southeast Asia also advanced.

On Wall Street, the upswell of hope about curbing the virus outbreak was so strong that investors completely sidestepped the report showing the U.S. economy shrank at a 4.8% annual rate in the first three months of the year.

The S&P 500 vaulted 2.7% higher, extending a rally that’s brought the U.S. stock market to the brink of its best month in 45 years.

The spark for Wednesday’s rally was a report that the experimental drug remdesivir proved effective against the new coronavirus in a study run by the National Institutes of Health. The nation’s top infectious diseases expert said the drug reduced the time it takes patients to recover, and it raised hopes that life around the world may eventually tiptoe back toward “normal.”

“With the refreshed optimism on the Covid-19 end, Asia markets can likewise be seen charging ahead into what will be the end of week for many markets in the region.” said Jingyi Pan, a market strategist for IG in Singapore.

Also boosting sentiments were some data out of China that appeared to show recovery from the economic damage over the virus outbreak may be coming gradually.

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