Asia shares gain despite worsening pandemic, inflation fears

TOKYO (AP) — Asian shares advanced Tuesday as investors snapped up bargains after recent sell-offs spurred by a worsening of the pandemic in some countries.

Japan's benchmark Nikkei 225 surged 2.1% to finish at 28,406.84. South Korea's Kospi gained 1.2% to 3,172.73. Australia's S&P/ASX 200 added 0.6% to 77,066.00. Hong Kong's Hang Seng jumped 1.3% to 28,564.36, while the Shanghai Composite edged up 0.2% to 3,524.13.

Regional markets shrugged off data showing Japan’s economy contracted at 5.1% annual pace in the last quarter as numbers of new coronavirus cases surged. Analysts expected the results and don’t expect improvements in the situation anytime soon.

Although Asia so far has fared better in curbing COVID-19 infections, compared to the U.S., South and Central America and parts of Europe, worries are growing about the latest surges in cases in India, Japan, Thailand and other countries.

Yeap Jung Rong, market strategist at IG in Singapore, said Asian markets were seeking “to rebound from weakness over concerns on virus resurgences.”

U.S. stocks slipped on Monday, tacking more losses onto last week’s stumbles, as worries about inflation continue to dog Wall Street.

The S&P 500 dipped 0.3% to 4,163.29, with tech stocks and other former market darlings once again taking the brunt of the losses. The benchmark index is coming off a 1.4% weekly drop from its record high, which would have been even worse if not for a late rebound.

The Dow Jones Industrial Average fell 0.2% to 34,327.79, while the Nasdaq composite lost 0.4% to 13,379.05.

Most stocks in the S&P 500 fell, but pockets of strength helped limit the damage. Energy stocks jumped as the price of crude oil rose, while producers of metals and other raw materials also climbed. The Russell 2000 index of...