Asia shares up as sentiments boosted by Fed minutes, US jobs

TOKYO (AP) — Asian shares are mostly higher following a rally on Wall Street as investors assessed minutes from the Federal Reserve’s latest meeting of policymakers and welcomed encouraging data on U.S. jobs.

Worries over China’s economic slowdown were weighing on regional sentiment.

Japan's benchmark Nikkei 225 rose 0.4% to finish at 25,820.80. Australia's S&P/ASX 200 edged up nearly 0.1% to 7,063.60. South Korea's Kospi added 0.6% to 2,269.71. Hong Kong's Hang Seng jumped 1.3% to 21,055.60, while the Shanghai Composite gained 1.1% to 3,156.44.

“Despite the positive close in Wall Street, the fade of earlier gains and muted moves in the U.S. equity futures this morning are driving more measured upside in the Asia session,” Yeap Jun Rong, a market analyst at IG, said in a report.

Widespread COVID-19 cases in China have added to gloom over a long-term slump in its property sector and over the impact of pandemic restrictions that were only recently loosened as the virus gained ground in the worst nationwide outbreak so far.

“Retail sales in general should be weaker in December compared to the prior month,” said Robert Carnell, regional head of research Asia-Pacific at ING. He said demand might bounce back during the Lunar New Year later in the month.

“After the long holiday, there could be even more daily COVID cases, and then another quiet month for retail. The road to recovery may not be smooth for retailers,” he said.

The government will release its weekly unemployment report on Thursday and its closely watched monthly employment report, for December, on Friday. Strong jobs numbers are seen as an indication of inflationary pressures that support further interest rate increases by the Federal Reserve.

But layoffs have been mounting in the technology sector, which...