Asian shares mostly higher after wobbly rally on Wall St

Gains by Apple, Microsoft and other technology stocks were some of the biggest forces lifting the market, as the 10-year Treasury yield fell below 3 per cent. Stocks of energy producers also jumped as oil prices rose to roughly 120 per barrel, up more than 55 per cent for the year so far.

Shares were mostly higher in Asia on Wednesday after the US. stocks rallied on heavy buying of technology companies. Advancing Chinese technology shares also pushed Hong Kong sharply higher. Benchmarks likewise rose in Tokyo, Seoul, and Sydney. Shanghai declined. Oil prices remained near USD 120 per barrel. Investors are waiting for more clarity on where interest rates, inflation, and economies are heading. Japan's economy contracted at a 0.5 percent annual rate in the first quarter amid a major outbreak of coronavirus, the Cabinet Office reported. That was smaller than the 1.0 percent contraction in the preliminary estimate. The latest data showed consumer spending and other private demand were not as weak as earlier thought. Tokyo's Nikkei 225 index gained 0.9 percent to 28,207.55 while the Kospi in South Korea was little changed at 2,625.13. In Sydney, the S&P/ASX 200 advanced 0.5 percent to 7,173.33. Hong Kong's Hang Seng index jumped 1.7 percent to 21,897.83 as Chinese technology stocks surged after Beijing approved a new batch of video games. That was seen as a sign the business outlook for tech companies is improving after a prolonged regulatory crackdown.

Tencent, China's largest games firm, rose 4.7 percent. E-commerce giant Alibaba Group Holding soared 8.1 percent and food delivery concern Meituan advanced 3.6 percent. US stocks rallied Tuesday as Treasury yields eased. The S&P 500 climbed 1 percent to 4,160.68 after reversing a morning loss of 1 percent. The Dow Jones Industrial Average rose 0.8 percent to 33,180.14 after bouncing between losses and gains throughout the day. The Nasdaq composite gained 0.9 percent to 12,175.23. Gains by Apple, Microsoft, and other technology stocks were some of the biggest forces lifting the market, as the 10-year Treasury yield fell below 3 percent. Stocks of energy producers also jumped as oil prices rose to roughly $120 per barrel, up more than 55 percent for the year so far. Exxon Mobil climbed 4.6 percent, and ConocoPhillips added 4.5 percent. Kohl's soared 9.5 percent after the department store chain said it's in advanced talks to sell itself for about USD 8 billion to Vitamin Shoppe owner Franchise Group. Jam maker JM Smucker rose 5.7 percent after reporting stronger earnings than analysts expected.

Stocks initially fell after Target warned of lower profit margins as it slashes prices to clear out inventory. The retail giant sank 2.3 percent after it announced moves it said were needed to keep up with customers' changing behaviors. Other retailers got caught in the downdraft, and Walmart fell 1.2 percent.

The World Bank sharply cut its forecast for economic growth this year, adding to worries as it pointed to Russia's war against Ukraine and the possibility of food shortages, and the potential return of " stagflation," a toxic mix of high inflation and sluggish growth unseen for more than four decades.

The economy's fragility has been atop Wall Street's mind this year amid worries about interest-rate hikes coming from the Federal Reserve. The central bank is moving aggressively to stamp out the worst inflation in decades, but it risks choking off the economy if it moves too far or too quickly. The Fed is widely expected to raise its key short-term interest rate by half a percentage point at its meeting next week. That would be the second straight increase of double the usual amount, and investors expect a third in July. Treasury yields have largely climbed through this year with expectations for a more aggressive Fed. They moderated a bit on Tuesday, though. The yield on the 10-year Treasury fell back to 2.98 percent from 3.03 percent late Monday. The two-year yield, which more closely tracks expectations for Fed action, dipped more modestly to 2.72 percent from 2.73 percent.

The next big update on inflation arrives Friday when the US government releases its latest reading on the consumer price index. In another trading, benchmark US crude oil added 41 cents to USD 119.82 per barrel in electronic trading on the New York Mercantile Exchange. It gained 91 cents to USD 118.50 per barrel on Tuesday.

Brent crude, the standard for international trading, picked up 30 cents to USD 120.87 per barrel.

The U.S. dollar was trading at 133.13 Japanese yen, up from 132.61 yen. The euro slipped to USD 1.0682 from USD 1.0705.