Japanese stocks rebound as Omicron fears fade

TOKYO, Dec. 8 (Reuters) – Japanese stocks surged on Wednesday as investors hoped the Omicron variant of the coronavirus could be less disruptive to the global economy than initially feared.

As of 01:20 GMT, the Nikkei stock average (.N225) was up 1.11% to 28,771.81 while the larger Topix (.TOPX) added 0.61% to 2,001.85, both reaching their highest level since November 26.

Preliminary evidence indicates that Omicron likely has a higher degree of transmissibility but is less severe, America’s leading infectious disease expert Anthony Fauci said on Tuesday. Read more

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A wide range of stocks advanced, led by a 2.7% rise in semiconductor stocks (.MIJP0SE00PJP). Among them, Taiyo Yuden (6976.T) rose 4.3% while Tokyo Electron (8035.T) added 2.4% and Lasertec (6920.T) rose 2.8%.

Electronics maker Omron (6645.T) jumped 4% while game maker Nintendo (7974.T) rose 3.1%.

US stocks gained on Tuesday despite rising short-term bond yields, signaling that equity markets have potentially digested the initial shock of fears the Federal Reserve will accelerate its reduction in bond purchases.

But some market players have remained cautious.

“Looking ahead to next year, cutting rates and Fed rate hikes will remain an important theme and I don’t think the market is completely done with the corrections related to this,” Yuya Fukue said. , trader at Rheos Capital Works.

Interest-rate-sensitive real estate companies fell, penalized by a portfolio rebalancing linked to an index adjustment, as well as media coverage of the government’s plan to cut tax deductions for home loans.

Mitsui Fudosan (8801.T) fell 3.7% while Sumitomo Realty and Development (8830.T) lost 2.7% and Mitsubishi Estate (8802.T) lost 1.9%, hitting a low in one year.

The Topix real estate index (.IRLTY.T) fell 1.7%.

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Reporting by Hideyuki Sano; Editing by Devika Syamnath

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