Pfizer’s COVID pill shakes up global recovery trade

November 9, 2021 Emerging Markets

Shares tied to reopening trades from casinos to airlines surged in Asia on Monday after Pfizer Inc. said that its COVID-19 pill could reduce hospitalizations and deaths in high-risk patients by 89 per cent.

A Bloomberg gauge of Macau casino shares jumped 5.9 per cent, the biggest move in more than two months, while an index of Asia-Pacific airline stocks rallied 4.5 per month, the most since March. Luggage manufacturer Samsonite International SA climbed 14 per cent in Hong Kong.

The buying frenzy in Asia, which tracks gains among similar stocks in the U.S., comes as Pfizer looked to become the second pharmaceutical company to offer an oral pill to combat the virus. While Pfizer’s drug has yet to receive emergency authorization from U.S. regulators, investors say that it shows promise to help ease the pandemic globally and accelerate a return to travel.

The pill is “bringing some hope that reopening will be able to take place more smoothly, especially if the pill is able to reduce the strain on hospital capacity,” said Jun Rong Yeap, market strategist with IG Asia Pte. in Singapore. “The fact that it is an oral treatment may also suggest that it may be more well-received, along with its high efficacy.”