Japanese Stocks Stop Losing Streak, And Omicron Limits Gains

Japanese stocks closed higher in choppy trading on Wednesday after three consecutive sessions of heavy losses, but uncertainty over the impact of the omicron capped gains.

The Nikkei index ended trading on Wednesday, up 0.41 percent to 27,935.62 points, after rising nearly 1 percent.

The broader TOPIX index compensated for its early losses, rising 0.44 percent to 1,936.74 points.

The Nikkei has lost 5.7 percent in the past three sessions, while the Topix has fallen 4.8 percent.

The market is volatile as investors are cautious amid doubts about the mutated Omicron of the Coronavirus after the first infection was confirmed in Japan on Tuesday, a day after borders were closed to all foreign arrivals in one of the world’s most stringent precautions.

Sectors sensitive to economic conditions such as shipping, papermaking, and equipment were the best performers.

Robot maker Fanuc and air conditioning maker Daikin Industries made the most of the Nikkei’s gain, up 4.45 percent and 4.47 percent, respectively.

Automakers rose after data showed Japanese industrial production rose in October for the first time in four months as the reopening of Asian factories eased supply constraints.

Toyota Motor shares rose 2.22 percent, while Honda Motor rose 2.39 percent.

Heavyweight technology companies declined, with SoftBank Group falling 2.19 percent, while the M3 medical services platform fell 2.11 percent.