Asian markets struggle as virus ebbs and flares around world

August 26, 2020: Markets struggled Wednesday in Asia as investors weighed ongoing worries about the economic impact of coronavirus and fresh outbreaks in some countries against signs it is easing in other parts of the world and hopes for a vaccine.

Wall Street provided a third-successive record-breaking lead, with tech firms' march ever higher unmoved by a sharp drop in confidence in the crucial US consumer sector, while easing China-US trade fears provided support.

The closely watched Conference Board index saw a sharp drop in July, with views on future expectations and the present both down after a summer spike in infections across the US Sun Belt, suggesting little chance of improvement any time soon

"Disappointment over the lack of another fiscal package supporting incomes, still choppy news on the virus and last week's jobless news were not that comforting, either," said National Australia Bank's Ray Attrill.

"This reading puts consumer confidence back to pandemic lows."

And while there are signs the disease is levelling off in the US, other countries are fighting to subdue new flare-ups, with Spain calling in the army to try to help curb its spread and South Korea reclosing all schools and kindergartens in the greater Seoul region.

And observers warned the upcoming winter could see more infections as people are forced to stay indoors.

In early trade, Hong Kong and Shanghai each edged up 0.1 percent, while Taipei gained 0.3 percent.

But Tokyo finished the morning down 0.2 percent, Sydney and Singapore shed one percent and Seoul slipped 0.3 percent. Wellington, Jakarta and Manila were also down.

"The situation is still far better than it was in the spring with more asymptomatic cases and much broader testing," said AxiCorp's Stephen Innes.

"However, recent momentum and outbreaks around the world are worrying, as second and third-wave coronavirus outbreaks still pose the most significant threat to the economic recovery."

But he added tech firms would likely continue to be well supported as people work, study and shop from home as fresh containment measures are imposed.

Oil prices held on to Tuesday's big gains as Hurricane Laura threatens installations in the Gulf of Mexico, with the commodity sitting around highs not seen since early March.

- Key figures around 0230 GMT -

• Tokyo - Nikkei 225: DOWN 0.2 percent at 23,257.17 (break)
• Hong Kong - Hang Seng: UP 0.1 percent at 25,511.68
• Shanghai - Composite: UP 0.1 percent at 3,376.70
• Euro/dollar: DOWN at $1.1824 from $1.1833 at 2100 GMT
• Dollar/yen: UP at 106.44 yen from 106.35 yen
• Pound/dollar: DOWN at $1.3142 from $1.3149
• Euro/pound: DOWN at 89.95 pence from 89.97 pence
• West Texas Intermediate: DOWN 0.1 percent at $43.31
• Brent North Sea crude: UP 0.2 percent at $45.96 per barrel
• New York - Dow: DOWN 0.2 percent at 28,248.44 (close)
• London - FTSE 100: DOWN 1.1 percent at 6,037.01 (close)

AFP/APP