Asian shares fall on jitters over US, China

Major Asian stock markets declined Wednesday amid investor concern about US stimulus spending and a trade agreement with Beijing. Market benchmarks in Shanghai, Tokyo, Hong Kong and Sydney declined.

Investors are watching the stalemate among US legislators over employment benefits for millions of Americans thrown out of work by the Covid-19 pandemic and spending to shore up anemic economic growth.

At the same time, news reports from Washington said Chinese and American trade envoys will meet this month to review their “Phase 1” agreement aimed at ending a tariff war. That follows President Donald Trump’s threat to discard the agreement over Beijing’s handling of the coronavirus pandemic.

The price of gold rose again after a deadly explosion in Beirut. The precious metal has hit a string of record highs, rising $12.20 to $2,033.20 per ounce.

The explosion killed at least 70 people, injured more than 3,000 and flattened much of the Lebanese capital’s port. The cause of the most destructive blast in the country’s history was unclear.

Investors have been buying gold and silver, usually seen as a store of value if stock prices decline. Forecasters see that as an indicator of rising unease about the global economic outlook.

Wednesday’s trading in Asia was lackluster, “with the mood darkening on both the US aid package and geopolitics fronts,” said Jingyi Pan of IG in a report.

The Shanghai Composite Index lost 0.5 percent to 3,354.92 and the Nikkei 225 in Tokyo sank 0.7 percent to 22,426.91. Hong Kong’s Hang Seng was off less than 0.1 percent at 24,934.14.

The S& P- ASX 200 in Sydney fell 0.9 percent to 5,981.50 while Seoul’s Kospi gained 0.7 percent to 2,296.98. New Zealand and Jakarta retreated while Singapore gained.

Overnight on Wall Street, the benchmark S&P 500 index gained 0.4 percent to 3,306.51 as a rally eased. The index is within 2.4 percent of its February record high. The Dow Jones Industrial Average climbed 0.6 percent to 26,828.47. The Nasdaq composite added 0.4 percent to a record 10,941.17.

Global markets have recovered most of this year’s losses as investors look ahead to the possible development of a coronavirus vaccine.