HONG KONG, May 20 — Asian markets were mixed today as a two-day rally ran out of steam on profit-taking, with investor confidence also tempered by worries about the long-term damage coronavirus lockdowns are having on the global economy.

Equities have enjoyed a broad advance for several weeks as virus infection and death rates slow in badly hit countries, allowing governments to lift strict stay-at-home measures that have hammered businesses.

But, while there is a general feeling the worst is past, simmering China-US tensions and a slew of data highlighting the deep wounds being inflicted on economies continues to trouble trading floors.

The World Bank warned the crisis could leave about 60 million in extreme poverty, adding that it saw the global economy contracting five per cent this year.

Treasury Secretary Steven Mnuchin, meanwhile, said the US economy could endure "permanent damage” if lockdowns to keep Covid-19 from spreading drag on.

Monday’s news of promising results from early trials of a possible vaccine fired a surge across markets.

But that has been tempered by a report in Stat News — which focuses on health and medicine — that was sceptical of the announcement, saying it "revealed very little information” and no data about the treatment.

"We are being fairly cautious,” Shawn Matthews of Hondius Capital Management told Bloomberg TV. "If you look at the economy, it feels like it’s the summer of hope right now — where everyone is hoping it’s going to turn around.”

Tokyo ended 0.8 per cent up, Sydney rose 0.2 per cent and Mumbai added 0.9 per cent, while there were also advances in Seoul, Taipei, Manila and Bangkok.

But Hong Kong was 0.1 per cent lower, while Shanghai dipped 0.5 per cent, Singapore shed 0.9 per cent and Jakarta dropped 0.3 per cent.

London, Paris and Frankfurt were all in the red in early trading.

Investors were keeping tabs on Washington, where House Democrats have passed a US$3 trillion (RM13 trillion) aid bill, to add to a similar stimulus already agreed.

But Republicans senators are unlikely to push it through, saying existing measures should first flow through the economy.

Analysts have warned that the deep divisions on Capitol Hill, particularly with elections in November, will likely mean any new deal cannot be expected any time soon.

Oil markets were flat after snapping a four-day rally yesterday on profit-taking, with uncertainty about the economic outlook offsetting optimism over the lifting of lockdowns and huge output cuts by the world’s biggest producers.

Still, prices were supported by news that US stockpiles had fallen last week by five million barrels.

Key figures around 0720 GMT

Tokyo — Nikkei 225: UP 0.8 per cent at 20,595.15 (close)

Hong Kong — Hang Seng: DOWN 0.1 per cent at 24,374.69

Shanghai — Composite: DOWN 0.5 per cent at 2,883.74 (close)

London — FTSE 100: DOWN 0.6 per cent at 5,968.74

Brent North Sea crude: UP 0.3 per cent at US$34.75 per barrel

West Texas Intermediate: DOWN 0.1 per cent at US$31.94 (new contract)

Euro/dollar: UP at US$1.0957 from US$1.0927 at 2110 GMT

Dollar/yen: UP at 107.74 yen from 107.66 yen

Pound/dollar: UP at US$1.2244 from US$1.2242

Euro/pound: UP at 89.50 pence from 89.15 pence

New York — Dow: DOWN 1.6 per cent at 24,206.86 (close) — AFP