Asian stock markets were mixed on Friday after Wall Street sank following signs that damage to the US economy from the COVID-19 pandemic is worsening while the US Congress is deadlocked over possible new aid.
Shanghai and Tokyo retreated while Hong Kong and Seoul gained.
The MSCI Asia-Pacific Index rose 0.33 percent to 194.87, up 0.5 percent for the week.
The TAIEX on Friday inched up 0.09 percent to 14,261.69 points, up 0.9 percent for the week.
Investors have been encouraged by progress in developing vaccines.
However, optimism has been dented by rising infection numbers in the US and some other markets, which prompted renewed curbs on business.
Overnight, Wall Street’s benchmark S&P 500 index slipped 0.1 percent after the US government reported more people than expected applied for unemployment last week. The index hit an all-time high on Tuesday.
“While the stimulus deadlock is proving to be the ultimate rally capper, it was the gnarliest of Main Street concerns that hurt sentiment,” AxiCorp Financial Services Pty chief global markets strategist Stephen Innes.
The Shanghai Composite Index on Friday lost 0.8 percent to 3,347.19, down 2.8 percent for the week.
Hong Kong’s Hang Seng on Friday added 0.4 percent to 26,505.87, but fell 1.2 percent for the week.
Japan’s benchmark Nikkei 225 index on Friday lost 0.4 percent to 26,652.52, falling by the same percentage for the week.
South Korea’s KOSPI on Friday advanced 0.9 percent to 2,770 points, taking its weekly gain to 1.4 percent.
Sydney’s S&P/ASX 200 was on Friday off 0.6 percent at 6,642.60, virtually unchanged for the week.
India’s SENSEX gained 0.3 percent to 46,099, rising 2.3 percent for the week. The NIFTY 50 also rose 0.3 percent on Friday and added 1.9 percent for the week.
New Zealand and Singapore advanced, while Jakarta declined.
US stocks slipped after the US government on Thursday reported that 835,000 people applied for unemployment last month, the highest level since September.
That meant the total number of people receiving unemployment benefits rose for the first time in three months, from 5.5 million to 5.8 million.
Weekly unemployment claims before the pandemic were usually about 225,000.
On Thursday, a proposed US$908 billion aid deal all but collapsed after US Senate Majority Leader Mitch McConnell said Republican senators would not support giving US$160 billion to state and local governments.
Republicans are pressing for a measure that would shield companies from potential coronavirus-related lawsuits.
The package would extend unemployment benefits that are due to expire on Dec. 26. Without it, more than 9 million people would lose benefits, which would undercut consumer spending, the main engine of the US economy.
Also on Thursday, the European Central Bank announced another 500 billion euros (US$606 billion) in stimulus.
Additional reporting by staff writer
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