Asian stocks follow Wall St higher amid virus uncertainty

BEIJING (AP) — Asian stock markets were mixed Wednesday as investors weighed the economic impact of the spread of the coronavirus's delta variant and Wall Street ended August with a gain for the seventh straight month.

Shanghai, Tokyo and Hong Kong advanced. Sydney declined.

Wall Street's benchmark S&P 500 declined 0.1% on Tuesday from the previous day's record but ended August with a 2.9% gain.

Investors are optimistic about stronger U.S. corporate profits and took comments by Federal Reserve chairman Jerome Powell on Friday as assurance interest rates will stay low. But that is being tested by signs the virus is depressing economic activity.

Powell's comments are “being overshadowed by mixed economic data" as the virus impact “becomes more obvious,” said Venkateswaran Lavanya of Mizuho Bank in a report.

On Tuesday, a U.S. business group, the Conference Board, reported consumer confidence fell sharply in August. Most of the decline was tied to the delta variant, which has inundated hospitals with patients.

The Shanghai Composite Index rose 0.9% to 3,579.46 and the Nikkei 225 in Tokyo added 1.2% to 28,450.06.

The Hang Seng in Hong Kong advanced 0.6% to 26,101.95. The Kospi in South Korea gained 0.3% to 3,215.13.

Sydney's S&P-ASX 200 shed 0.3% to 7,514.50 after the government reported economic output rose 1.4% over a year earlier in the quarter ending in June.

Forecasters warn anti-virus control imposed in the latest quarter probably will drag full-year growth to below that level. IHS Market reported its measure of Australian manufacturing contracted in August for the first time since June 2020.

India’s Sensex opened up 0.5% at 57,830.52 after economic growth surged to 20.1% over the depressed level of a year earlier in the latest quarter. It was India’s...