Asian shares fall as caution sets in on coronavirus worries

Asian shares fell Thursday as caution set in among investors after banks and industrial companies helped lift stocks mostly higher on Wall Street.

Japan's benchmark Nikkei 225 edged down 0.2% in afternoon trading to 28,024.44. South Korea's Kospi slipped 0.5% to 3,205.83 after jigsawing earlier in the day. Australia's S&P/ASX 200 lost earlier gains to be little changed, inching down less than 0.1% to 7,580.40. Hong Kong's Hang Seng declined 0.5% to 26,531.74, while the Shanghai Composite fell 0.3% to 3,523.91.

Worries in the region remained about the recent regulatory crackdown in China. Analysts said the next target appeared to be the online insurance industry.

“This comes amid increasing COVID-19 risks, with further tightening of restrictions in several cities potentially impacting the services sector near-term,” said Yeap Jun Rong, market strategist at IG in Singapore.

COVID-19 infection cases are also surging in Japan, where a state of emergency has been in place, even as the nation played host to the Tokyo Olympics and plans to do the same for the Paralympics, opening later this month. Cases are reaching record highs in Tokyo, as well as several other regions. Medical officials say hospitals are getting stretched thin.

“On the COVID-19 front, worries over growing restrictions are becoming a cause of concern. Growth expectations in the region will likely take a hit in the coming weeks. The recent resurgence of the virus will probably slow the economic recovery,” said Anderson Alves, a trader at ActivTrades.

On Wall Street on Wednesday, the S&P 500 and Dow Jones Industrial Average reached past the record highs they set a day earlier. Nearly three-fourths of the companies in the benchmark index notched gains, including energy stocks, which rose along with...