Asian stocks fall back after Wall Street advances to record

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Photo credit A man walks past a bank electronic board showing the Hong Kong share index outside a Hong Kong local bank Monday, Aug. 31, 2019. Asian stock markets have risen after Wall Street turned in its fifth straight weekly gain and China’s manufacturing growth held steady. (AP Photo/Vincent Yu)
By The Associated Press

BEIJING (AP) — Asian stock markets gave up early gains Monday after Wall Street turned in its fifth straight weekly gain and China’s manufacturing growth held steady.

The Shanghai Composite Index rose 0.8% to 3,428.07 after a survey showed growth in manufacturing held steady in August at the previous month's rate. But it later fell back, shedding 0.2% to 3,395.68.

The Nikkei 225 in Tokyo advanced 1.1% to 23,139.76, rebounding from heavy selling Friday after Prime Minister Shinzo Abe’s announcement that he was resigning.

The index also was lifted by gains of between 4% and 9.5% in major trading companies after investor Warren Buffett's Berkshire Hathaway announced it had invested in long-term stakes of just over 5% in the five companies.

The Hang Seng in Hong Kong slipped to 25,292.81 while the Kospi in Seoul retreated 1.2% to 2,326.17. Sydney's S&P-ASX 200 was little-changed at 6,074.30.

India's Sensex opened up 0.5% but then retreated, losing 0.6% to 39,220.21. New Zealand, Jakarta and Singapore retreated while Bangkok gained.

U.S. stocks benefited Friday from Federal Reserve chairman Jerome Powell’s announcement of a strategy change that could keep interest rates low. The change, dubbed “average inflation targeting,” could hold down rates even if inflation hits the Fed’s 2% target.

Global stock markets have recovered most of this year’s losses despite rising coronavirus infection numbers in the United States, Brazil and some other countries.

Wall Street’s benchmark S&P 500 index is at a record high, propelled by big gains for technology stocks investors expect to do well despite the pandemic. But most stocks in the index still are down.

On Friday, the S&P 500 gained 0.7% to 3,508.01. The index gained 3.3% for the week, capping its longest weekly winning streak since December.

The Dow Jones Industrial Average rallied 0.6% to 28,653.87. It returned to positive territory for the year.

The Nasdaq composite climbed 0.6% to a record 11,695.63.

Benchmark U.S. crude oil gained 12 cents to $43.09 per barrel in electronic trading on the New York Mercantile Exchange. The contract slipped 7 cents on Friday to settle at $42.97. Brent crude, the international standard, rose 22 cents to $46.03 per barrel in London.

The dollar edged up to 105.57 yen from Friday's 105.55. The euro edged down to $1.1903 from $1.1918.