Asian shares mixed as worries percolate over pandemic

Markets were mixed in Asia on Wednesday as investors kept a wary eye on how the coronavirus pandemic will affect the economic outlook.

Stocks slipped in Japan and Hong Kong but rose in Seoul and Shanghai and jumped more than 2% in Sydney after the government reported retail sales have fared better than expected.

Overnight, Wall Street ended a four-day losing streak, though Federal Reserve Chairman Jerome Powell pressed Congress for more aid to support the economy’s recovery, citing worries over the lingering impact of the pandemic.

At a House of Representatives committee hearing Tuesday, Powell said the economy appears to be improving, but some areas appear to be slowing after extra weekly unemployment benefits and other stimulus that Congress approved in March expired.

“In fact, even as Fed Powell has sounded caution about the strength and steadiness of a recovery — contingent on ‘keeping the virus under control' — the wider Fed positioning is not one of unbridled pipeline stimulus. And this may limit follow-through rallies in asset markets," Mizuho Bank said in a commentary.

Tokyo's Nikkei 225 trimmed early losses, closing 0.1% lower at 23,346.49, reopening after a four-day weekend. The Hang Seng in Hong Kong also edged 0.1% lower, to 23,697.11. South Korea's Kospi reversed its retreat, gaining 0.3% to 2,338.69. Shares fell in Taiwan and Southeast Asia.

India's Sensex climbed 0.5% to 37,921.09, while the Shanghai Composite index inched up 0.1% to 3,276.18.

Australia's S&P/ASX 200 jumped 2.6% to 5,933.30 after the government said retail sales fell 4.2% from the month before in August, much less than the 11% forecast, Marcel Thieliant of Capital Economics said in a commentary.

That was despite a renewal of lockdowns to battle coronavirus outbreaks in...