Asian shares slip in cautious trading, shrug off US rally

Asian shares have slipped in cautious trading despite a rally on Wall Street led by technology companies and banks that erased most of the losses from a sell-off the day before

TOKYO -- Asian shares slipped in cautious trading Wednesday, shrugging off a rally on Wall Street led by technology companies and banks that erased most of the losses from the previous day's sell-off.

Japan's benchmark Nikkei 225 sank 1.3% in afternoon trading to 27,470.09. South Korea's Kospi dipped 1.4% to 2,919.87. Australia's S&P/ASX 200 shed 0.6% to 7,206.50. Hong Kong's Hang Seng was little changed inching down less than 0.1% to 24,093.07. Trading was closed in Shanghai for the Chinese national holidays.

Worries remain in Asia about ongoing coronavirus infections, although hopes are growing that economic activity will return closer to normal later this year, bouncing back from the deep downturn in 2020.

“On the risks front, China credit problems and contagion risks have certainty not abated with developer concerns still surfacing. As such, caution has not been thrown to the winds,” said Tan Boon Heng of the Asia & Oceania Treasury Department at Mizuho Bank in Singapore.