Gold surges, Asian stocks mixed amid US-China feud, pandemic
BEIJING (AP) — Major Asian stock markets declined and gold surged to a record price Monday amid U.S.-China tensions and concern a recovery from the coronavirus pandemic might be weakening.
Shanghai, Tokyo and Hong Kong retreated while Seoul advanced. India opened lower and Southeast Asian markets were mixed.
Wall Street ended last week down after a new diplomatic flare-up between Washington and Beijing and mixed earnings reports.
Global markets have regained most of this year’s losses but forecasters warn the rebound might be too big and too early as virus case numbers rise in the United States and some other economies.
Weak stock prices “speak volumes of soured risk appetite amid escalating U.S.-China risks, worsening virus outbreaks and a flagging recovery,” said Hayaki Narita of Mizuho Bank in a report.
The Shanghai Composite Index sank 0.4% to 3,181.15 and the Nikkei 225 in Tokyo lost 0.2% to 22,695.06. The Hang Seng in Hong Kong retreated 0.6% to 25,549.57.
The Kospi in Seoul advanced 0.8% to 2,217.16 and Australia’s S&P-ASX 200 gained 0.1% to 6,032.00. India’s Sensex opened down 0.5% at 37,926.24. New Zealand and Singapore declined while Jakarta rose.
Gold jumped $30.40 to a record $1927.90 per ounce in a sign investors were looking for safe havens to park money.
On Friday, Wall Street’s benchmark S&P 500 index lost 0.6% to 3,215.63. The Dow Jones Industrial Average slid 0.7%, to 26,469.89. The Nasdaq composite fell 98.24 points, or 0.9%, to 10,363.18.
Investors were rattled by the latest U.S.-Chinese diplomatic feud. The Trump administration told Beijing last week to close its consulate in Houston. China responded by ordering the closure of the U.S. consulate in the southwestern city of Chengdu.
That adds to strains over trade,...
