Shares mixed in Asia as China-US tensions cast shadow
MITO, Japan (AP) — Shares were mixed in Asia on Thursday, as flaring tensions between the U.S. and China added 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.
The Kospi in Seoul lost 0.9% to 2,209.02 after South Korea reported that its economy contracted 3.3% in April-June after shrinking 1.3% in the first quarter. In annual terms, the economy contracted at a 2.9% pace.
Exports fell 16.6% as demand was hammered by the coronavirus pandemic, the 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 added 0.2% to 6,085.90, even after Josh Frydenberg, the treasurer, said data showed the economy contracted 7% in the last quarter.
“Our economy has taken a big hit and there are many challenges we confront," he said.
It was unclear if the 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.
The benchmark Shanghai Composite index gave up early modest gains, falling 1.2% to 3,293.54.
Further roiling already fractious relations between the two biggest economies, the 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 their campaigning, analysts said.
“In the main, the escalation in U.S.-China tensions is a reminder of the headline risk faced by investors during the upcoming U.S. election campaign," Stephen Innes of AxiCorp said in a commentary.
The Shanghai Stock...
