US shares were also set to drift higher with Dow futures up 0.8% at 29,796.
On Wall Street, the Dow Jones Industrial Average rose 1.12 per cent, the S&P 500 gained or 0.56 per cent while the Nasdaq Composite added only 0.22 per cent, underperforming as traders rotated away from big tech names.
"The extent of market gains on a spree of positive vaccine announcements over recent weeks has been capped by more worrying short-term news on the spread of the COVID-19 virus and renewed restrictions on activity", UBS Global Wealth Management's Chief Investment Officer Mark Haefele said in a note on Monday. Eastern time. Boeing, which brings a heavyweight to the Dow, rose 4.4 per cent. The Nasdaq Composite Index was up 25.66 points, or 0.22 percent, to 11,880.63. Overseas markets also rose. The high price reached 11949.32.
"Markets have been constrained by very high levels of uncertainty on the United States political front and around vaccines for weeks, so with those two going away investors are considering the prospect of a return to normality in 2021", said Emmanuel Cau, head of European equity strategy at Barclays.More news: China launches mission to bring back material from moon
"Traders are still buying into vaccine news clearance, as the end of the pandemic becomes imaginable". That allows the incoming president to coordinate with federal agencies on plans for taking over on January 20, despite ongoing efforts by President Donald Trump to overturn the election. Investors also appeared to approve of Biden's treasury nominee, Janet L. Yellen, who had served as the chair of the Federal Reserve from 2014 to 2018, leading the agency during the Obama and Trump administrations. Widely admired in the financial world, Yellen would be the first woman to lead the department, in a line stretching back to Alexander Hamilton in 1789, taking on a pivotal role to help shape policies at a perilous time.
USA stocks closed higher in a choppy session on Monday as hopes for a COVID-19 vaccine lifted economically sensitive sectors such as energy and industrials, but a pullback in megacap shares curbed gains on the S&P 500 and Nasdaq.
British drugs group AstraZeneca and the University of Oxford said they will seek regulatory approval for their coronavirus vaccine after it showed up to 90 per cent effectiveness. Unlike rival candidates, AstraZeneca's doesn't have to be stored at ultra-cold temperatures, making it easier to distribute.
Last week, Pfizer and Moderna both reported study results showing their vaccines were nearly 95% effective.More news: Mohamed Salah available for Liverpool's clash with Atalanta
In company news, shares of drugmaker Regeneron Pharmaceuticals Inc jumped 5.7% in premarket trading after the FDA on Saturday granted emergency use authorisation to its Covid-19 antibody therapy. The drug, which President Trump received when he was sickened last month, is meant to try to prevent hospitalization and worsening disease from developing in patients with mild-to-moderate symptoms.
Treasury yields rose as investors became more optimistic about the prospects for economic growth.
In the absence of new fiscal stimulus, investors have again turned to the Federal Reserve for signs of more monetary support, although Treasury Secretary Steven Mnuchin last week pulled the plug on some of the central bank's pandemic emergency lending programs. They will reopen on Friday for a half-day session.More news: Two people killed in California church stabbing spree