Asian stocks fall back after Wall Street advances to record

BEIJING (AP) — Asian stock markets gave up early gains Monday after Wall Street turned in its fifth straight weekly gain and China’s manufacturing growth held steady.

The Shanghai Composite Index rose 0.8% to 3,428.07 after a survey showed growth in manufacturing held steady in August at the previous month's rate. But it later fell back, shedding 0.2% to 3,395.68.

The Nikkei 225 in Tokyo advanced 1.1% to 23,139.76, rebounding from heavy selling Friday after Prime Minister Shinzo Abe’s announcement that he was resigning.

The index also was lifted by gains of between 4% and 9.5% in major trading companies after investor Warren Buffett's Berkshire Hathaway announced it had invested in long-term stakes of just over 5% in the five companies.

The Hang Seng in Hong Kong slipped to 25,292.81 while the Kospi in Seoul retreated 1.2% to 2,326.17. Sydney's S&P-ASX 200 was little-changed at 6,074.30.

India's Sensex opened up 0.5% but then retreated, losing 0.6% to 39,220.21. New Zealand, Jakarta and Singapore retreated while Bangkok gained.

U.S. stocks benefited Friday from Federal Reserve chairman Jerome Powell’s announcement of a strategy change that could keep interest rates low. The change, dubbed “average inflation targeting,” could hold down rates even if inflation hits the Fed’s 2% target.

Global stock markets have recovered most of this year’s losses despite rising coronavirus infection numbers in the United States, Brazil and some other countries.

Wall Street’s benchmark S&P 500 index is at a record high, propelled by big gains for technology stocks investors expect to do well despite the pandemic. But most stocks in the index still are down.

On Friday, the S&P 500 gained 0.7% to 3,508.01. The index gained 3.3% for the week, capping its...