Japan Shares Extend Gains as Omicron Fears Recede

Japanese stocks jumped on Wednesday as investors raised hopes that the impact of the omicron on the global economy will be less than initially expected.

The Nikkei average rose 1.4 percent to 28,860.62, its highest closing level since November 25.

The broader Topix index advanced 0.6 percent to 2002.24 points.

The top US infectious disease expert, Anthony Fauci, said on Tuesday that preliminary evidence suggested that Omicron was likely more contagious but less dangerous.

Technology stocks led the gains, with semiconductor-related shares jumping 2.6 percent.

Electronics maker Omron rose 3.6 percent, while gaming maker Nintendo added 3.5 percent.

US stocks rose on Tuesday despite a rise in short-term bond yields, indicating that stock markets are likely to absorb concerns that the Federal Reserve (the US central bank) will accelerate the pace of reducing its bond purchases.