HONG KONG, Sept 1, 2021 (BSS/AFP) - Asian markets were mixed Wednesday as
investors tried to assess whether the global recovery will be resilient
enough to withstand the fast-spreading Delta Covid variant, with optimism
being tested by the stuttering rollout of vaccines and a spike in infections
in some countries.

  China's drive to tighten its grip on the world's number two economy with a
swathe of new regulations for private enterprises is also weighing on
sentiment, while there are also concerns that valuations may have run too hot
as several markets sit at record or multi-year highs.

  Federal Reserve boss Jerome Powell's indication Friday that the central
bank will take it easy in winding back its ultra-loose monetary policy -- and
even more cautious in hiking interest rates -- has helped fuel a healthy run-
up this week.

  But Wall Street finished Tuesday on a tepid note after a closely watched
survey showed US consumer confidence saw a sharp drop in August to its lowest
level in six months owing to concerns about Delta and surging prices.

  "A combination of higher prices -- still much in evidence across a swathe
of incoming US data -- and doubtless too the resurgence in Delta-strain
Covid-19 infections, and hospitalisations, are taking a toll," said Ray
Attrill of National Australia Bank.

  "How temporary this will prove to be of course remains to be seen."

  While the United States remains largely open thanks to a successful vaccine
rollout, other countries that have administered fewer jabs are struggling
with fresh waves of Covid and are being forced to impose strict containment
measures.

  This has tempered hopes that the blockbuster economic recovery seen at the
start of the year can be maintained.

  In early Asian trade, Tokyo, Singapore, Seoul and Wellington rose but Hong
Kong, Shanghai, Sydney, Taipei, Manila and Jakarta were in negative
territory.

  "Markets are taking a little bit of a breather," Cliff Hodge, of
Cornerstone Wealth, said, adding they "are now trying to grapple with: well,
what's next?"

  Focus is now on the release Friday of US jobs data, which could have a huge
bearing on when the Fed decides to start winding down its bond-buying
financial support programme.

  Oil prices edged up ahead of the monthly meeting of OPEC and other
producers who are expected to continue raising output with the global
recovery largely still on track.

  Industry body the American Petroleum Institute said stockpiles rose more
than 2 million barrels last week, according to Bloomberg News, and observers
expect the market to wobble over the coming months.

  "The market is likely to remain volatile -- we not only have the OPEC
meeting, hurricane season is also upon us," Howie Lee, at Oversea-Chinese
Banking Corp, said.

  "Brent is still expected to trend within $70 to $75 for now, but the near-
term volatility means it may overshoot on both ends momentarily in the coming
week or two."

  - Key figures at 0230 GMT -

  Tokyo - Nikkei 225: UP 1.3 percent at 28,446.81 (break)

  Hong Kong - Hang Seng Index: DOWN 0.1 percent at 25,864.43

  Shanghai - Composite: DOWN 0.3 percent at 3,531.83

  Dollar/yen: UP at 110.20 yen from 110.00 yen at 2040 GMT

  Pound/dollar: DOWN at $1.3734 from $1.3751

  Euro/dollar: DOWN at $1.1802 from $1.1807

  Euro/pound: UP at 85.93 pence from 85.84 pence

  West Texas Intermediate: UP 0.5 percent at $68.82 per barrel

  Brent North Sea crude: UP 0.4 percent at $71.94 per barrel

   New York - Dow: DOWN 0.1 percent at 35,360.73 (close)

  London - FTSE 100: DOWN 0.4 percent at 7,119.70 (close)