Asian benchmarks mostly decline amid lingering China worries

TOKYO (AP) — Asian shares mostly declined Thursday amid concerns about the impact of China's “zero-COVID” strategy mixed with hopes for economic activity and tourism returning to normal.

Benchmarks fell in Tokyo, Seoul, Hong Kong and Shanghai, while gaining in Sydney. Oil prices fell.

Market watchers noted worries about how the Federal Reserve might not ease up on its aggressive interest rate hikes, which are aimed at curbing inflation pressures. Much of the market’s prior rally on Wall Street was due to such hopes, including easing inflation.

“Markets are still unconvinced that the U.S. Fed will opt for lower magnitude rate hikes as incoming data sent mixed signals,” said Venkateswaran Lavanya at Mizuho Bank.