Asian shares mostly higher as virus fears ease

BANGKOK (AP) — Stocks advanced Wednesday in Asia after another broad rally on Wall Street as investors wagered that the new variant of the COVID-19 virus won’t pose a big threat to the economy.

Shares rose in Tokyo, Shanghai and Seoul, while Hong Kong declined. Oil prices fell back.

Japan downgraded its growth estimate for the last quarter to minus 3.6% from an earlier reported contraction of 3.0%. The change reflected weaker consumer and public demand and trade and lower levels of private inventories.

Economists are forecasting a rebound in the current quarter, thanks to a recovery in activity as coronavirus caseloads plummeted.

Parliament is expected to approve a proposed record stimulus package of 56 trillion yen ($490 billion), including cash handouts and aid to ailing businesses, to help the economy out of the doldrums worsened by the coronavirus pandemic.

Tokyo's Nikkei 225 index gained 1.4% to 28,860.62 and the Shanghai Composite index climbed 1.2% to 3,637.57. Hong Kong's Hang Seng was slipped 0.1% to 23,954.04.

In Australia, the S&P/ASX 200 jumped 1.3% to 7,405.40, while the Kospi in South Korea picked up 0.3% to 3,001.80.

On Tuesday, the S&P 500 rose 2.1% for its biggest gain since March, ending at 4,686.75. The Nasdaq climbed 3% to 15,686.92 and the Dow Jones Industrials rose 1.4% to 35,719.43.

Smaller company stocks did better than the broader market in a sign that investors are confident about economic growth. The Russell 2000 gained 2.3% to 2,253.79.

The rebound this week comes after the market posted two losing weeks in a row, weighed down by concerns over the spread of the omicron variant of COVID-19, mixed data on the job market and worries about inflation.

Comments Monday from Dr. Anthony Fauci, the White House’s chief medical adviser, who...