Japan Stocks fall on coronavirus spread worries

Japan share market finished session lower on Thursday, 13 January 2022, due to concerns about the economic impact of the coronavirus infections in the country, which is currently grappling with a sixth wave of infections as the highly transmissible Omicron variant of the virus runs rampant. Meanwhile, sentiment was also hurt by the yen strengthening to mid-114 level against the U.S. dollar.

At closing bell, the 225-issue Nikkei Stock Average declined 276.53 points, or 0.96%, to 28,489.13. The broader Topix index of all First Section issues on the Tokyo Stock Exchange decreased 13.78 points, or 0.68%, to 2,005.58.

Investors were concerned over the outlook for Japan's economic recovery as coronavirus infections topped 10,000 for the first time in four months a day earlier in major business hubs such as Tokyo and Osaka. The Tokyo metropolitan government on Thursday raised its COVID-19 alert level by one notch to the second highest on its four tier scale owing to the rampant spread of the Omicron variant of the virus around the capital.

 

The World Health Organization reported a record 15 million new Covid-19 cases globally for a single week, as omicron rapidly replaces delta as the dominant variant across the globe.

Shares of tech Tech related issues met heavy selloff pressure, with Olympus dropping 5%, Yasakawa tumbling 6.3%, while Fujitsu General ended the day 2.4% lower.

Shares of transportation issues retreated due to fears of falling patronage as more and more people stay at home as the number of Omicron cases continues to surge, with Japan Airlines losing 1.5%, while Odakyu Electric Railway slipped 3.6%. Retail stocks were also sold for similar reasons, with department store operator J. Front Retailing losing 0.4% by the close.

CURRENCY NEWS: The Japanese yen traded at 114.56 per dollar, as it strengthened from levels above 115 in the previous sessions.

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