Asian shares mostly higher after wobbly rally on Wall St

BANGKOK (AP) — Shares were mostly higher in Asia on Wednesday after U.S. stocks rallied on heavy buying of technology companies. Advancing Chinese technology shares also pushed Hong Kong sharply higher.

Benchmarks likewise rose in other regional markets. Oil prices remained near $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% annual rate in the first quarter amid a major outbreak of coronavirus, the Cabinet Office reported. That was smaller than the 1.0% contraction in the preliminary estimate. The latest data showed consumer spending and other private demand was not as weak as earlier thought.

Tokyo's Nikkei 225 index gained 1% to 28,234.29 while the Kospi in South Korea was little changed at 2,626.14. In Sydney, the S&P/ASX 200 advanced 0.4% to 7,121.10.

Hong Kong's Hang Seng index jumped 2.1% to 21,987.92 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.

The Shanghai Composite index reversed early losses, gaining 0.5% to 3,259.24.

Tencent, China's largest games firm, rose 5.9% even though it was not directly affected by the government approvals. E-commerce giant Alibaba Group Holding soared 9.6% and food delivery concern Meituan advanced 3.5%.

U.S. stocks rallied Tuesday as Treasury yields eased. The S&P 500 climbed 1% to 4,160.68 after reversing a morning loss of 1%. The Dow Jones Industrial Average rose 0.8% to 33,180.14 after bouncing between losses and gains throughout the day. The Nasdaq composite gained 0.9% to 12,175.23.

Gains by Apple, Microsoft and other technology stocks were some of the...