Asian shares mixed amid 2nd wave coronavirus, election fears

TOKYO (AP) — Asian shares were mixed on Friday as investors weighed concerns about the U.S. presidential election and an economic stimulus package, on top of flaring outbreaks of coronavirus.

Looking ahead, markets are awaiting the release of data on the Chinese economy next week.

Shares rose in China but fell in Japan, South Korea and Australia.

Stocks ended mostly lower on Wall Street, giving the S&P 500 its third straight loss this week.

Japan's benchmark Nikkei 225 fell 0.3% in afternoon trading to 23,429.75. Australia's S&P/ASX 200 shed 0.5% to 6,176.80. South Korea's Kospi declined nearly 1.0% to 2,337.81. Hong Kong's Hang Seng gained 1.1% to 24,425.13, while the Shanghai Composite rose 0.2% to 3,338.10.

“Asian stocks look set for a mixed start today as traders digest the latest news on U.S. stimulus negotiations amid a resurgence in COVID-19 cases in some parts of the world,” said Stephen Innes, chief global market strategist at Axi.

“The markets’ on again off again love affair with an impending stimulus torrent masks the fact that investor uncertainty is bristling ahead of an expected choppy period in terms of headline risk,” Innes said.

U.S. stock indexes erased much of their early losses and closed modestly lower Thursday, extending the S&P 500's losing streak to a third day.

Wall Street has turned cautious this week amid a confluence of worrisome trends for the economy, which is still hampered by the pandemic. Coronavirus infections are rising in Europe, prompting governments in France and Britain to impose new measures to contain the outbreak. Caseloads area also climbing in the Americas and parts of Asia.

In the U.S., investor optimism that the Trump administration and Congress will soon reach a deal on another round of stimulus...