Asian shares mostly lower as pandemic saps buying momentum

TOKYO (AP) — Shares were mostly lower in Asia on Wednesday as uncertainty over the coronavirus pandemic sapped the buying enthusiasm that has been driving prices higher.

The selling followed a deeper pullback on Wall Street and in France, Germany and elsewhere after the European Union’s executive arm said this year’s recession caused by the pandemic will be deeper than forecast. It also said next year’s expected rebound could be weaker than expected.

Japan's benchmark Nikkei 225 dropped 0.7% in afternoon trading to 22,462.77. Australia's S&P/ASX 200 dipped 1.5% to 5,920.30. South Korea's Kospi shed 0.1% to 2,161.24. Hong Kong's Hang Seng fell 0.1% after fluctuating during much of the day to 25,936.04, while the Shanghai Composite bounced higher, adding 1.0% to 3,380.20.

Given the current murky outlook, investors are likely to cash in on recent gains, analysts said.

“Investors are trying their best to look through the knotty COVID-19 economic entanglement. Still, you can see why they might be more prone to booking some profits on upticks,” Stephen Innes, chief global market strategist at AxiCorp, said in a report.

Wall Street's recent string of big gains came to an abrupt stop Tuesday as stocks closed broadly lower following a pullback in markets overseas.

The S&P 500 fell 1.1% to 3,145.32 after spending most of the day in the red. The sell-off snapped the index's five-day winning streak. Technology stocks, banks and companies that rely on consumer spending accounted for a big slice of the slide, which accelerated toward the end of the day.

Optimism that the economy is on the mend as businesses reopen has helped drive stocks higher. But the recent surge in new coronavirus cases has clouded hopes for a relatively quick economic turnaround. Investors...