Tokyo stocks finish lower on spread of Omicron variant-Xinhua

Tokyo stocks finish lower on spread of Omicron variant

Source: Xinhua| 2021-12-27 16:55:20|Editor: huaxia

TOKYO, Dec. 27 (Xinhua) -- Tokyo stocks finished lower on Monday as market sentiment was dragged down by a surge in Omicron variant of the COVID-19 infections across the world, which deepened uncertainties over the impact on global economic recovery.

The 225-issue Nikkei Stock Average finished 106.13 points, or 0.37 percent, lower from Friday at 28,676.46.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed 8.88 points, or 0.45 percent, lower at 1,977.90.

Trading volume on the main section increased to 777.48 million shares from Friday's 746.72 million shares.

By the close of play, nonferrous metal, electric power and gas, and information and communication sectors were major decliners. Losing issues outnumbered gaining ones 1,455 to 635 on the First Section, while 95 finished unchanged.

Tokyo stocks moved in a narrow range in negative territory most of the day. Subdued trading remained on Monday as market investors lacked fresh trading cues as some overseas markets were closed on Friday for the Christmas holidays.

Concerns over the spread of the Omicron variant are rising among investors amid record-high COVID-19 numbers in countries including the United States and France. The strain has also been reported across Japan, including in Tokyo, and Osaka and Kyoto prefectures.

"Investors were worried that the pace of global economic recovery will slow as instances of the Omicron strain surpass those of Delta in the United States, while countries log surges not seen since January," said Maki Sawada, a strategist at Nomura Securities Co.'s investment content department.

However, she added that the decline in the Tokyo market as investors still waited for more data on the Omicron variant, and stocks associated with semiconductors performed strongly with Tokyo Electron rising 2.1 percent and Advantest climbing 0.8 percent.

Among eateries that met selling on the new variant fears, pub chain operator Watami declined 1.2 percent, and Kushikatsu Tanaka Holdings dropped 1.0 percent.

Heavyweight company SoftBank Group lost 3.0 percent after media reported on Saturday that Credit Suisse was preparing to take legal action against it to recoup funds linked to the collapse of Greensill Capital.

Nitori Holdings, a furniture and interior chain store retailer, plunged 6.5 percent due to a weaker-than-expected operating profit this business year through November posted on Friday. Enditem

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