Asian shares mostly higher; Tokyo slips as virus cases surge

BANGKOK (AP) — Shares were mostly higher in Asia on Thursday though Tokyo’s benchmark declined as reports of rising coronavirus cases raised alarm over another setback in the recovery from the pandemic.

Tokyo reported 545 new cases and Osaka's government declared a medical emergency as the latest surge in infections outpaced minimal progress in inoculating people against COVID-19.

The Nikkei 225 index slipped 0.1% to 29,708.98, while the Hang Seng in Hong Kong jumped 1.2% to 29,014.57. In Seoul, the Kospi edged 0.2% higher to 3,143.26. Australia's S&P/ASX 200 gained 1% to 6,998.80. The Shanghai Composite index added 0.1% to 3,481.70.

U.S. futures were higher.

On Wednesday, the benchmark S&P 500 inched up 0.1% to 4,079.95. The Dow Jones Industrial Average gained 0.1% to 33,446.26. The Nasdaq composite slipped 0.1% to 13,688.84. The S&P 500 and Dow each set record highs on Monday.

Small company stocks, which have been outgaining the broader market this year, took the brunt of the selling. The Russell 2000 index of smaller companies gave up 1.6%, to 2,223.05. The index is up 12.6% so far this year, while the S&P 500, which tracks large companies, is up 8.6%.

The broader market has been mostly subdued this week as investors remain cautiously optimistic about the economic recovery. Vaccine distribution has been ramping up and President Joe Biden has bumped up his deadline for states to make doses available to all adults by April 19. The vaccines are helping to fuel a recovery, but the virus is still very much a threat as variants are discovered and threaten additional lockdowns.

Analysts expect the economy to recover this year, but they also anticipate the market remain choppy as investors shift money to companies and industries that stand to benefit...