Shares mixed in Asia as China-US tensions cast shadow

 Shares were mixed in Asia on Thursday, as flaring tensions between U.S. and China ded to uncertainties overhanging regional markets.

Benchmarks rose in Hong Kong and Sydney but fell in Shanghai, Seoul and Taiwan. Asia’s biggest market, Tokyo, was closed for a four-day weekend.

Kospi in Seoul lost 0.9% to 2,209.02 after South Korea reported that its ecomy contracted 3.3% in April-June after shrinking 1.3% in first quarter. In annual terms, ecomy contracted at a 2.9% pace.

Exports fell 16.6% as demand was hammered by coronavirus pandemic, central bank reported in a statement on its website.

India's Sensex picked up 0.1% to 37,935.75. Australia’s S&P/ASX 200 ded 0.2% to 6,085.90, even after Josh Frydenberg, treasurer, said data showed ecomy contracted 7% in last quarter.

“Our ecomy has taken a big hit and re are many challenges we confront," he said.

It was unclear if latest flare-up in tensions between Washington and Beijing was swaying investors in Asia, where Hong Kong's Hang Seng gained 0.3% to 25,139.69.

benchmark Shanghai Composite index gave up early modest gains, falling 1.2% to 3,293.54.

Furr roiling alrey fractious relations between two biggest ecomies, U.S. has ordered China to close its consulate in Houston, saying it was necessary to protect American intellectual property. China said it would retaliate.

Antagonisms are bound to heat up as presidential contender Joe Biden and President Donald Trump ramp up ir campaigning, analysts said.

“In main, escalation in U.S.-China tensions is a reminder of heline risk faced by investors during upcoming U.S. election campaign," Stephen Innes of AxiCorp said in a commentary.

Shanghai Stock Exchange ded companies from its new techlogy board to Shanghai Composite Index on Wednesday in index’s first major change in three deces.

To help better reflect business performance, companies that receive financial warnings will be removed from index, exchange said. waiting period for ding newly tred stocks will be extended from as little as a few days to as much as one year.

Overnight, S&P 500 picked up 0.6% to 3,276.02, its fourth session of vances, wavering between gains and losses as investors sized up a mix of company earnings reports. Dow Junes Industrial Aver also gained 0.6%, to 27,005.84.

Strength in techlogy and health care stocks outweighed losses in energy companies, banks and elsewhere in market. Treasury yields fell slightly, a sign of caution in market.

Nasdaq recovered from an early dip to d 0.2% to 10,706.13, while Russell 2000 index of small company stocks picked up 0.2%, to 1,490.14.

“Having come off a furious rally off March 23 lows, market is clearly in a period of consolidation and assessing second-quarter earnings results,” said Bill ry, senior investment director at U.S. Bank Wealth Manment.

So far, earnings have been coming in moderately better than expected, though companies have worked to lower expectations.

S&P 500 is within 3.3% of all-time high it set in February.

Homebuilders marched broly higher after National Association of Realtors said sales of previously occupied U.S. homes climbed last month by a robust 20.7%.

Discord between Republicans and Democrats over more financial aid to Americans and U.S. businesses is ar worry, as states grapple with rebounds in coronavirus cases.

“ market is anticipating that re will be something. What final (pack) looks like is a different question,” ry said.

Gold for August delivery rose ar $3.10 to $1,868.20 an ounce, after jumping $21.20 to $1,865.10 an ounce overnight in ar sign investors were shifting some holdings to tritionally less risky assets.

price of benchmark U.S oil for September delivery rose 8 cents to $41.98 per barrel in electronic tring on New York Mercantile Exchange. It fell 6 cents to settle at $41.90 a barrel Wednesday.

Brent crude oil for September delivery picked up 10 cents to $44.39 per ounce.

In currency dealings, U.S. dollar fetched 107.14 Japanese yen, down from 107.16 yen late Wednesday. euro strengned to $1.1578 from $1.1569.