Asian shares were mostly lower Wednesday after a lackluster session on Wall Street following talks between the United States and China on the status of a deal meant to work as truce in their trade war.
The market has meandered recently on snippets of news about the coronavirus, developments on a potential vaccine for it and other concerns. But the global economy is still hurting overall, with airlines running at a fraction of their capacities and restaurants still mostly empty.
Japan’s benchmark Nikkei 225 NIK, -0.02% finished flat. Hong Kong’s Hang Seng HSI, +0.02% slipped 0.2%, while the Shanghai Composite SHCOMP, -1.29% fell 1.2%. South Korea’s Kospi 180721, +0.10% rose 0.1%, while benchmark indexes in Taiwan Y9999, +0.58% , Singapore STI, -0.65% and Indonesia JAKIDX, +0.02% were mixed. Australia’s S&P/ASX 200 XJO, -0.73% lost 0.7%.
Markets are getting “a mixed bag” of signals, such as relatively positive U.S. home sales but a disappointing read on consumer confidence, as fears of more waves of COVID-19 infections persist, said Hayaki Narita, of the Asia & Oceania Treasury Department at Mizuho Bank.
“Depending on your point of view, data and developments may be encouraging or gloomy,” he said.
Stocks were mixed on Wall Street Tuesday, but gains were strong enough for tech companies and other pockets of the market to carry the S&P 500 SPX, +0.36% to its fourth straight gain and another record high.
The benchmark index rose 0.4% to 3,443.62, even though slightly more stocks within it sank than rose. The Dow Jones Industrial Average DJIA, -0.21% fell 0.2%,to 28,248.44, and the Nasdaq composite COMP, +0.76% rose 0.8% to 11,466.47.
A report showed consumer confidence unexpectedly dropped this month, contrary to economists’ forecast for an improvement. But another report said sales of new homes accelerated faster than economists expected last month.
On the trade front, the U.S. Trade Representative said that “both sides see progress” following talks between the world’s two largest economies. China’s Ministry of Commerce said the two sides discussed strengthening coordination of their economic policies, though it gave no details.
Tensions between the United States and China have escalated recently, with President Donald Trump targeting Chinese technology companies in particular. The worsening relationship has been one of the bigger concerns for investors, as well as Asian regional economies.
