Japan Nikkei extends losses on omicron woes

Japan share market finished lower for second consecutive session on Monday, 27 December 2021, as investor risk sentiment was dragged down amid concerns about on global economic recovery due to surge in Omicron variant of the COVID-19 infections across the world. Most of sectors declined, with shares in nonferrous metal, electric power and gas, and information and communication sectors were major decliners.

At closing bell, the 225-issue Nikkei Stock Average fell 106.13 points, or 0.37%, to 28,676.46. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 8.88 points, or 0.45%, to 1,977.90.

The Tokyo market moved in a narrow range in negative territory most of the day, as investors were worried that the pace of global economic recovery will slow as instances of the Omicron strain spread across 108 countries in just one month and it surpass those of Delta in the United States. The strain has also been reported across Japan, including in Tokyo, and Osaka and Kyoto prefectures.

Stocks associated with semiconductors performed strongly with Tokyo Electron rising 2.1% and Advantest climbing 0.8%.

Shares of eateries met selling on the new variant fears, with pub chain operator Watami down 1.2%, while Kushikatsu Tanaka Holdings dropped 1%.

SoftBank Group shares fell 3% after reports that Credit Suisse was preparing to take legal action against it to recoup funds linked to the collapse of Greensill Capital.

Nitori Holdings shares plunged 6.5% after furniture and interior chain store retailer posted weaker-than-expected operating profit this business year through November.

CURRENCY NEWS: The dollar fetched 114.48 yen in Asian trade, compared with 114.25-35 yen in New York and 114.34-38 yen in Tokyo on Friday.

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