Published 09:50 IST, October 16th 2020

Asian shares mixed amid 2nd wave coronavirus, election fears

Asian shares were mixed on Friday as investors weighed concerns about the US presidential election and an economic stimulus package, on top of fears of flaring outbreaks of coronavirus.

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Asian shares were mixed on Friday as investors weighed concerns about US presidential election and an ecomic stimulus pack, on top of fears of flaring outbreaks of coronavirus. Investors are also looking ahe to release of data on Chinese ecomy next week. Shares rose in Japan and China but fell in South Korea and Australia.

Stocks ended mostly lower on Wall Street, giving S&P 500 its third straight loss this week. Japan's benchmark Nikkei 225 inched up less than 0.1% by midday to 23,523.37. Australia's S&P/ASX 200 shed 0.2% to 6,196.10. South Korea's Kospi declined 0.6% to 2,346.88. Hong Kong's Hang Seng gained 0.9% to 24,363.70, while Shanghai Composite was unchanged at 3,332.05.

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“Asian stocks look set for a mixed start today as trers digest latest news on US stimulus negotiations amid a resurgence in COVID-19 cases in some parts of world,” said Stephen Innes, chief global market strategist at Axi.

“ markets' on again off again love affair with an impending stimulus torrent masks fact that investor uncertainty is bristling ahe of an expected choppy period in terms of heline risk,” Innes said.

US stock indexes erased much of ir early losses and closed modestly lower on Thursday, extending S&P 500's losing streak to a third day. Wall Street has turned cautious this week amid a confluence of worrisome trends for ecomy, which is still hampered by pandemic. Coronavirus infections are rising in Europe, prompting governments in France and Britain to impose new measures to contain outbreak. Caselos area also rising in Americas and parts of Asia.

In US, investor optimism that Trump ministration and Congress will soon reach a deal on ar round of stimulus for ecomy has waned. Meanwhile, campaign atrics continue, with latest question wher debate scheduled next week between President Donald Trump and former Vice President Joseph Biden will go ahe as planned. clash planned for this week was called off after Trump's bout of coronavirus. Biden has said he plans to participate in next week's debate but that he would ask Trump to take a COVID-19 test before arriving.

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S&P 500 fell 0.2% to 3,483.34. Dow Jones Industrial Aver dropped 0.1% to 28,494.20, while Nasdaq composite dropped 0.5% to 11,713.87. Russell 2000 index of small-cap stocks bounced back from an early slide to gain 1.1%, closing at 1,638.88. Stocks have been mostly climbing this month, but have pulled back this week as ongoing talks between Democrats and Republicans on an ecomic stimulus pack have foundered.

Investors have been hoping that Washington would provide more financial support for ecomy since July, when a $600-a-week extra benefit for unemployed expired. US data on unemployment claims also weighed on investor sentiments. Labour Department said Thursday that number of Americans seeking unemployment benefits rose last week to 898,000, a historically high number that exceeds analysts forecasts.

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Investors are also watching for earnings reports from US and global companies for signing on how y are holding up amid pandemic. A resurgence in COVID-19 cases in regions around world will mean limits on public life, including a possible return to lockdowns that are damaging to growth. In energy tring, benchmark US crude lost 31 cents to $40.65 a barrel in electronic tring on New York Mercantile Exchange. It gave up 8 cents on Thursday to $40.96. Brent crude, international standard, fell 41 cents to $42.75 a barrel. US dollar slipped to 105.26 Japanese yen from 105.42 yen late Thursday. euro cost $1.1706, little changed from $1.1710. 

(Im Credits: AP)

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09:50 IST, October 16th 2020