Asia shares mixed after US rally despite rising virus fears
TOKYO (AP) — Asian shares were mixed Wednesday following another rally on Wall Street, tempered by fears over surging coronavirus cases in various parts of the world.
Japan's benchmark Nikkei 225 was little changed, inching down less than 0.1% to finish at 22,534.32. Australia's S&P/ASX 200 picked up 0.2% to 5,965.70. South Korea's Kospi added 1.4% to 2,161.51. Hong Kong's Hang Seng slipped 0.2% to 24,855.87, while the Shanghai Composite added 0.3% to 2,979.55.
Analysts are warning that, despite recent market rallies, there is little reassurance infections won't keep spreading, given the growing numbers in some parts of the U.S., Brazil and Asia.
“The nuance though is that the recovery falls short of being entrenched," said Hayaki Narita of Mizuho Bank, adding trade contractions for various countries this year are expected to be the worst ever.
Prakash Sapal, senior economist for ING, said the focus is slowly shifting back to the COVID-19 pandemic from optimism about a rebound from loosening lockdown restrictions.
“The recent acceleration in infections has rekindled concern that governments will be forced to shut down their economies once again, squandering the chance for the much-hoped-for economic bounce back," he said in a report.
On Wall Street, the S&P 500 rose 0.4% and is on pace for its third straight monthly gain. The Nasdaq composite, which is heavily weighted with technology stocks, climbed to an all-time high for the second day in a row. Bond yields rose, another sign of increasing confidence in the economy.
Health care stocks and companies that rely on consumer spending were also among the big gainers, while safe-play sectors like real estate and utilities stocks fell.
Investors have been focused on the prospects for an economic recovery as...
