Asian shares mixed as U.S. virus aid hopes fade

TOKYO (AP) — Asian shares were mixed Tuesday, after Wall Street's overnight decline as hopes faded Washington will come through with badly needed aid for the U.S. economy before the U.S. presidential election.

Investors have been focusing on U.S. economic stimulus amid global uncertainty about the continuing economic fallout from the coronavirus pandemic, which has slammed growth with social distancing restrictions, unemployment, crimped trade, as well as tourism and business closures.

Japan's benchmark Nikkei 225 declined 0.4% to 23,567.04, while South Korea's Kospi recouped earlier losses, gaining 0.3% to 2,353.86. Australia's S&P/ASX 200 fell 0.7% to 6,184.60. Hong Kong's Hang Seng inched 0.1% lower to 24,512.33, while the Shanghai Composite gained nearly 0.2% to 3,318.09.

India's Sensex rose 0.6% to 40,691.72. Shares fell in Taiwan and in Southeast Asia.

“As hope for a pre-election stimulus balloon deflates, and with stocks struggling to float on their own during a subpar earning season, exhaustion set in, and the laws of gravity took over,” said Stephen Innes, chief global market strategist at Axi.

“And with no shortage of uncertainly overshadowing the markets, investors continue to tack cautiously ahead of the final presidential debate,” Innes said in a report.

Market players are looking for additional data on China's recovery, as that could drive the sorely needed growth in the rest of Asia. Recent data out of Japan show exports to China have been recovering gradually.

On Wall Street, the S&P 500 dropped 1.6%, its worst day in more than three weeks. Wall Street is expecting lawmakers eventually will agree on new stimulus measures for the economy, but the odds of that happening before Nov. 3 Election Day have dimmed.

The S&P 500 fell 56.89...