Tokyo: Shares end lower on Omicron fears, SoftBank falls

[TOKYO] Japanese shares ended lower on Monday (Dec 27), with SoftBank Group leading losses, as concerns over the impact of the Omicron Covid-19 variant offset gains in heavyweight technology stocks.

The Nikkei share average slipped 0.37 per cent to close at 28,676.46, while the broader Topix lost 0.45 per cent to 1,977.90.

Global technology investor SoftBank Group fell 2.96 per cent on news that Credit Suisse is seeking information through US courts, which could lead to it taking legal action in the UK against the Japanese company to recover certain funds.

"We do not have market moving events at home or abroad, and many people are still away from the markets, it is hard to make active bets," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

The volume of shares traded on the Tokyo Stock Exchange's main board was 0.78 billion, compared with the average of 1.19 billion in the past 30 days.

"Under this environment investors chose to bet on a particular group of stocks, which were heavyweight chip-related, and any other shares were sold for an excuse of fears for the Omicron," Kamada added.

Technology shares advanced, with chip-related Tokyo Electron and Advantest rising 2.09 per cent and 0.83 per cent, respectively. Game maker Sony Group gained 0.67 per cent and medical equipment maker Terumo climbed 0.47 per cent.

Retailers, meanwhile, took a hit as more cases of the highly transmissible variant were found in Japan, raising concerns of tighter curbs slowing the economic recovery from the pandemic.

Uniqlo clothing shop operator Fast Retailing was the biggest drag on the Nikkei, falling 1.75 per cent.

Home interior goods retailer Nitori Holdings tumbled 6.53 per cent and Muji-brand retail stores Ryohin Keikaku lost 1.59 per cent.

There were 50 advancers on the Nikkei index against 169 decliners.

REUTERS