Asian stocks follow Wall Street higher after tech rally

BEIJING (AP) — Asian stock prices followed Wall Street higher on Wednesday following a rally for major tech companies.

Shanghai, Tokyo and Hong Kong advanced. South Korea retreated.

Wall Street's benchmark S&P 500 index closed up 1.4%, led by gains for Apple, Amazon and other tech majors. The Nasdaq composite index, dominated by tech shares, surged 3.7% for its biggest gain in four months.

Markets have been adjusting to a rise in long-term interest rates in the bond market, which has pulled money out of stocks. A reversal in bond market trends at least temporarily sent investors back to companies they hope will thrive after the coronavirus pandemic ends.

The swing shows "how fragile sentiment has become, driven by the absolute uncertainty” about the outlook for interest rates and inflation, said Stephen Innes of Axi in a report.

The Shanghai Composite Index rose 0.7% to 3,381.84 and the Nikkei 225 in Tokyo advanced 0.3% to 29,106.84. The Hang Seng in Hong Kong added 0.5% to 28,9904.00.

The Kospi in Seoul lost 0.6% to 2,957.54 while Australia's S&P-ASX 200 slid 0.4% to 6,745.60.

India's Sensex opened up 0.4% at 51,229.28. New Zealand and Indonesia rose while Singapore retreated.

On Wall Street, the S&P 500 rose Tuesday to 3,875.44. Communication companies and those that rely on consumer spending contributed to the increase. Financial, energy and industrial stocks lagged the broader market.

Apple rose 4.1%, chipmaker Nvidia climbed 8% and Tesla jumped 19.6% for the biggest gain in the S&P 500.

The Dow Jones Industrial Average, which is weighted less toward tech, rose 0.1% to 31,832.74.

The Nasdaq advanced to 13,073.82. Despite that, the index is 7.2% below its Feb. 12 high. On Monday it closed 10% below its peak in what is known as a correction on...