Asian stocks and US futures are running out of steam - CNN

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Hong Kong's Hang Seng Index (HSI) gained 0.4%, losing some of the momentum it had built earlier in the morning. Japan's Nikkei 225 (N225) rose 0.5%, also paring earlier gains.

South Korea's Kospi (KOSPI) was up 0.2%. But China's Shanghai Composite (SHCOMP) lost 0.5%, pulling back from early gains.

The market rally is faltering after the Dow Jones Industrial Index (INDU) on Monday finished up nearly 3%, or 835 points, while the broader S&P 500 (SPX) finished up 1.2%. The Nasdaq Composite (COMP) lagged behind, closing down 1.5%.

Wall Street futures also lost steam overnight. Dow futures were down 173 points, or 0.6%, S&P 500 futures were down 0.6% and Nasdaq futures lost 0.8%.

On Monday, stocks soared as drugmaker Pfizer announced that an early look at data from its Covid-19 vaccine, made with German partner BioNTech, shows that is 90% effective. Investors also reacted positively to greater political certainty following Joe Biden's victory in the US presidential election.

"Investors have been patiently waiting for the news of any vaccine development breakthrough and last night this patience paid off," said Tai Hui, chief Asia market strategist for JP Morgan Asset Management. But he added that any effective vaccine would still be months away from mass deployment.

The Shanghai-based Fosun Pharma, which has an agreement with BioNTech to distribute coronavirus vaccines, jumped 14% in Hong Kong on Tuesday. The stock also advanced 10% in Shanghai, the daily maximum allowable limit there.

Billionaire founder Guo Guangchang praised the positive vaccine news Monday night on the Chinese social media website Weibo, calling it a "victory for science and a victory for global cooperation."

Guo added that he hopes a vaccine can be launched in China as soon as possible, and said Fosun will continue to talk to Chinese regulators.

Tech stocks in Asia slumped Tuesday, following the Nasdaq's lead. Tech stocks on the Nikkei fell an average of 1.6%, according to data compiled by Refinitiv. The Hang Seng Tech Index — which tracks the 30 largest tech stocks in Hong Kong — sank 5.5%.

Investors might be pricing in expectations that demand for some tech products and services will slow as employees gradually return to the office, according to JP Morgan's Hui.

-- CNN's Nadia Kounang and Anneken Tappe contributed to this report.

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