Asian shares decline amid omicron, Fed, Ukraine jitters

TOKYO (AP) — Asian shares skidded Tuesday following a volatile day on Wall Street. Inflation-fighting measures from the Federal Reserve and the possibility of conflict between Russia and Ukraine are overhanging markets.

Japan's benchmark Nikkei 225 slipped 1.7% to finish at 27,131.34. Australia's S&P/ASX 200 dropped 2.5% to 6,961.60. South Korea's Kospi lost 2.7% to 2,717.38. Hong Kong's Hang Seng shed 1.9% to 24,198.37, while the Shanghai Composite dipped 2.3% to 3,444.65.

“The surprise turnaround in U.S. market overnight does not seem to provide any relief into Asia’s session today,” said Yeap Jun Rong, market strategist at IG.

Toyota shares fell nearly 2% after Japan's top automaker said further adjustments to production in Japan were needed because of a supply crunch of computer chips due to production disruptions related to COVID-19 restrictions and infections. Toyota Motor Corp. has previously seen similar stoppages and has apologized for keepings customers waiting for its products.

A late-day buying spree pushed the benchmark S&P 500 index to a 0.3% gain after pulling it out of so-called correction territory — a drop of 10% or more from its most recent high. The Dow Jones Industrial Average had declined more than 1,000 points before rallying and ending higher.

“We’re in this wait-and-see mode, which is almost the most uncomfortable place to be, so I think the market is really grappling with that,” said Lindsey Bell, chief markets and money strategist at Ally Invest.

Monday’s wild turnaround followed a three-week decline for the S&P 500, concluding with its worst weekly stretch since the start of the pandemic.

The S&P 500 fell as much as 4% Monday. The index has recovered from an intraday loss that big only three times in the past. The...