Asian markets mixed as US-China tensions offset stimulus hope

Asian markets were mixed Thursday as investors juggled hopes for a new stimulus deal in Washington with concerns about the virus and another flare-up between China and the United States.

Optimism over the development of a vaccine and a wall of government and central bank cash is providing much-needed support to equities as traders fret over a spike in new infections around the world and the re imposition of containment measures in the US and other key economies.

European leaders lifted sentiment this week when they finally agreed on an $860 billion rescue package for the eurozone, putting the focus on US lawmakers, with their earlier multi-trillion-dollar programme -- which gives cash to households -- about to wind down. 

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Republicans have been struggling to come up with a bill to counter a $3.5 trillion Democrat proposal, fanning concerns they will not come up with anything ahead of an August break.

However, reports said Mitch McConnell would soon unveil a $1 trillion plan after overcoming some differences with the White House.

Analysts said that while it may take some time, a package is expected to be ready for Donald Trump to sign off, with no-one wanting to be seen to deny money to the poorest ahead of a general election.

Indications a deal could be done helped Wall Street into positive territory, with dealers also cheered by an announcement from German firm BioNTech and Pfizer that the government had agreed to pay almost $2 billion for 100 million doses of a potential vaccine if regulatory approval is granted.

Agence France-Presse