Asian shares advance despite Wall Street retreat

BANGKOK (AP) — Stocks advanced in Asia on Wednesday after a wobbly day on Wall Street, when the S&P 500 gave back most of its gains from a day earlier.

Hong Kong led the advance, gaining 2.4%. Tokyo, Seoul, Shanghai and Sydney also were higher.

Investors have taken heart from an easing in bond prices that has alleviated worries over possible interest rate hikes. Bond yields have eased and the yield on the 10-year Treasury inched down to 1.40% early Wednesday.

But expectations for stronger economic growth in coming months continue to fuel worries that interest rates will head higher.

“It feels like we are in the eye of the storm," Stephen Innes of Axi said in a commentary. Investors have recently focused on selling high-priced technology shares but are also watching for policy changes as President Joe Biden's $1.9 billion stimulus package heads into the Senate after narrowly passing in the House.

“How much overheating and inflation will the Biden fiscal stimulus generate remains at the top of virtually every market conversation," Innes said.

In Hong Kong, the Hang Seng rose to 29,792.81. Tokyo's Nikkei 225 index added 0.5% to 29,559.10, while the Kospi in Seoul picked up 0.6% to 3,082.99. The Shanghai Composite index advanced 1.8% to 3,569.66.

Australia's S&P/ASX 200 gained 0.8% to 6,818.00 after the government reported the economy grew at a 3.1% quarterly rate, but a minus 1.1% annual rate, in the fourth quarter of last year. The better than expected result was helped by consumer demand and public spending, analysts said.

India's Sensex opened 0.8% higher.

On Tuesday, the S&P 500 fell 0.8% to 3,870.29 after earlier flipping between small gains and losses. A day before, the benchmark index had leaped 2.4% for its best performance since June....