France’s CAC 40 slipped 0.2% in early trading to 5,551.47. Germany’s DAX inched up nearly 0.1% to 13,886.27. Britain’s FTSE 100 added nearly 0.1% to 6,700.34. U.S. shares were set for modest gains, with Dow futures up nearly 0.2% at 30,962. S&P 500 futures were trading at 3,847.88, up 0.4%.

Japan’s benchmark Nikkei 225 gained 0.7% to finish at 28,822.29. Australia’s S&P/ASX200 added 0.4% to 6,824.70. South Korea’s Kospi gained 2.2% to 3,208.99. Hong Kong’s Hang Seng jumped 2.4% to 30,159.01, while the Shanghai Composite rose 0.5% to 3,624.24.

Hopes are high that once the pandemic comes under some control, regional economies will make strong recoveries, with lockdowns easing and vaccines rollouts starting in various places, including Singapore.

Also Read: FDI down 42pc globally in 2020; UNCTAD expects further weakness in 2021

“Vaccine breakthroughs make it likely that life will become more functional again at some point in 2021, resulting in higher GDP growth and more robust corporate earnings,” Stephen Innes, chief global markets strategist at Axi, said in a report.

“But increasing global COVID19 infections, new variants of the virus, tightening social distancing restrictions and delays in vaccine rollouts in some places, all increase the near-term growth risks,” he said.

Markets have been mostly rallying recently on hopes that COVID-19 vaccines will lead to a powerful economic recovery later this year as daily life gets closer to normal. Hopes are also high that Washington will deliver another dose of stimulus for the economy now that the White House and both houses of Congress are under single control of the Democrats.

Also Read: China economy grows in 2020 as rebound from virus gains

President Joe Biden has proposed a $1.9 trillion plan to send $1,400 to most Americans and deliver other support for the economy. But his party holds only the slimmest possible majority in the Senate, raising doubts about how much can be approved. Several Republicans have already voiced opposition to parts of the plan.

The coronavirus pandemic is also worsening and doing more damage to the economy by the day.

In China, where the pandemic began in late 2019, the government has reimposed travel controls after outbreaks in Beijing and other cities. A spike in infections has authorities calling on the public to avoid travel during February’s Lunar New Year holiday, normally the year’s most important family event.

Also Read: Volkswagen triples electric car sales ahead of climate rules

Massive support from central banks is providing a major underpinning for the markets. The Federal Reserve and others are holding short-term interest rates at record lows, among other measures to support economies until the pandemic can be brought under control.

Also Read: Global economy to shrink by 3.2pc: UN report

In other trading, benchmark U.S. crude rose 34 cents to $52.61 a barrel in electronic trading on the New York Mercantile Exchange. It lost 86 cents to $52.27 per barrel on Friday. Brent crude, the international standard edged up 30 cents to $55.71 a barrel.

The U.S. dollar fell to 103.74 Japanese yen from 103.83 yen late Friday. The euro cost $1.2175, up from $1.2169.