Asian Shares Mostly Lower Amid Spike In Yields

(RTTNews) - Asian stocks fell broadly on Wednesday as Treasury yields rose on Fed policy uncertainty and data showed Japan's industrial output fell for the third month in a row in November - suggesting the economy is still very fragile.

Investors pinned hopes of a recovery in demand after China moved to remove some of its most stringent travel restriction measures.

China's Shanghai Composite index slipped 0.26 percent to 3,087.40, snapping a two-day winning streak.

Hong Kong's Hang Seng index rallied 1.56 percent to 19,898.91 as traders returned to their desks after a long holiday weekend.

The Chinese government announced it will start issuing new passports in another major step that could send an influx of free-spending Chinese tourists to revenue-starved destinations in Asia and Europe for next month's Lunar New Year holiday.

Japanese markets ended lower as higher U.S. Treasury yields pressured chip-related shares.

Investors also digested data showing that the country's industrial output fell 0.1 percent month-on-month in November, declining for the third straight month, due to weak overseas and domestic demand.

The Nikkei average slid 0.41 percent to 26,340.50 while the broader Topix index finished marginally lower at 1,909.02.

The yen eased against the dollar after a summary of opinions at the BOJ December meeting showed board members discussed growing prospects that higher wages could finally eradicate the risk of a return to deflation.

Seoul stocks tumbled as heavyweight chipmakers and battery manufacturers turned ex-dividend. The Kospi average fell 2.24 percent to 2,280.45.

Australian stocks posted modest losses in post-holiday trading. The benchmark S&P/ASX 200 dropped 0.30 percent to 7,086.40, dragged down by financials and technology stocks.

The broader All Ordinaries index ended 0.35 percent lower at 7,262.20. Energy and mining stocks outperformed on China reopening optimism.

Genex Power shares slumped 18.8 percent after a consortium walked away from a takeover bid for the electricity generation firm.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index rose 0.39 percent to 11,539.31.

U.S. stocks ended mostly lower overnight as trading resumed following the long Christmas weekend.

The tech-heavy Nasdaq Composite tumbled 1.4 percent to reach its lowest closing level in well over a month and the S&P 500 dropped 0.4 percent as rising Treasury yields weighed on mega-cap growth stocks, offsetting optimism about China reopening plans. The Dow inched up 0.1 percent.