Nikkei edges down on Omicron fears, bargain hunt caps decline

Central Japan Railway

14/12/2021 02:38

By Junko Fujita
    TOKYO, Dec 14 (Reuters) - Japan's Nikkei index edged down on
Tuesday, as worries over the Omicron COVID-19 variant and
caution ahead of a bevy of central bank meetings offset the
boost from investors scooping up cheap stocks.
    The Nikkei  .N225  slipped 0.4% to 28,514.74 by 0151 GMT,
while the broader Topix  .TOPX  inched up 0.04% to 1,978.96. 
    Wider Asian equities also declined after British Prime
Minister Boris Johnson warned of a "tidal wave" of new Omicron
cases, and the World Health Organization said it poses a "very
high" global risk.  MKTS/GLOB  urn:newsml:reuters.com:*:nL8N2SX0NH
    "Overseas markets were hit by concerns on the impact of the
Omicron variant but in Japan, declines are limited as investors
are scooping up undervalued shares," said Ikuo Mitsui, fund
manager at Aizawa Securities.  
    "Japanese shares have become cheap as they have failed to
catch up recent rallies in other markets." 
    In the latest three months, the Nikkei has lost 3.17%,
against a 5.34% gain in the Dow Jones Industrial Average  .DJI 
and a 8.39% jump in the S&P 500  .SPX .
    This week, the U.S. Federal Reserve is expected to signal a
faster wind-down of asset purchases, while the European Central
Bank, the Bank of England and the Bank of Japan will also meet
to discuss normalizing their own monetary policies.  MKTS/GLOB 
    In Japan, travel-related stocks took a hit after news that
the fast-spreading Omicron variant accounted for around 40% of
infections in London and at least one death in the United
Kingdom.  urn:newsml:reuters.com:*:nL8N2SY1B2
    Airlines  .IAIRL.T  and railways  .IRAIL.T  led declines in
the Japanese bourse's 33 industry subindexes, with ANA Holdings 
 9202.T  losing 1.97%, Japan Airlines  9201.T  falling 1.85% and
Central Japan Railway  9022.T  slipping 1.35%. 
    The insurance sector  .IINSU.T , up 1.81%, was the best
performer, followed by drug makers  .IPHAM.T , which rose 1.2%. 
    Auto and parts makers  .ITEQP.T  gained. Toyota Motor
 7203.T  rebounded from losses in the previous session with a 
2.35% gain, while Honda Motor  7267.T  rose 0.95%. 
    

 (Editing by Devika Syamnath)
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