Asia report: Markets mostly lower as Omicron concern continues

Equity markets were mostly lower in the Asia-Pacific region on Wednesday, with Australasian bourses rising on their return from the extended Christmas break, as investors continued to monitor the global Omicron situation.

In Japan, the Nikkei 225 was down 0.56% at 28,906.88, as the yen weakened 0.17% against the dollar to last trade at JPY 115.01.

Technology conglomerate SoftBank Group was up 1.86%, while among the benchmark’s other major components, automation specialist Fanuc was down 0.65% and fashion firm Fast Retailing was 0.71% lower.

The broader Topix index was 0.3% weaker by the end of trading in Tokyo, closing at 1,998.99.

On the mainland, the Shanghai Composite was off 0.91% at 3,597.00, and the smaller, technology-heavy Shenzhen Composite was 0.8% lower at 2,494.41.

South Korea’s Kospi slipped 0.89% at 2,993.29, and the Hang Seng Index in Hong Kong was down 0.83% at 23,086.54.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 1.42%, while SK Hynix was 0.53% firmer.

“Overall, market sentiment was mixed due to a rise in coronavirus cases in the United States,” said AvaTrade chief market analyst Naeem Aslam of the global situation on Wednesday.

“The outlook for Asian Pacific markets remains mixed, with coronavirus cases on the rise and regulatory uncertainty in China discouraging investors from increasing their exposure to Asian markets.”

Oil prices were going in different directions at the end of the Asian day, with Brent crude last up 0.1% at $79.02 per barrel, while West Texas Intermediate lost 0.09% to $75.91.

In Australia, the S&P/ASX 200 jumped 1.21% to 7,509.80 after two trading days off to make up for the Christmas and Boxing Day holidays falling over the weekend.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 also returned from a two-day break to manage gains of 0.4%, closing at 12,940.42.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.12% at AUD 1.3852, and the Kiwi retreating 0.12% to NZD 1.4712.