Tokyo, Dec. 28 (BNA): Asian stocks were mixed on Tuesday, as optimism from a rally on Wall Street waned on concerns about the potential impact of the coronavirus omicron variable.
Japan’s Nikkei 225 index jumped nearly 1.0% to 28,960.31 in morning trading. South Korea’s Kospi Index rose 0.1% to 3002.72. Hong Kong’s Hang Seng fell 0.1% to 23,201.42, while the Shanghai Composite fell 0.2% to 3,610.32. Trading in Australia is closed due to Boxing Day.
Much of Asia will still have to see a spike in infections of the omicron variant already seen in other parts of the world, but experts warn that the region likely won’t be an exception.
Japan has not yet seen such a wave of new cases. Many areas are bustling with year-end shoppers, and many events are held with spectators, even though most people wear masks.
The total of new daily cases in Japan has reached nearly 200 recently. There have been relatively few COVID-related deaths so far with none in some recent days. However, analysts warned of future uncertainty.
“The record demonstrations have been over-optimistic,” said Vishnu Varathan of Mizuho Bank, referring to massive numbers of Omicron cases in Europe and the United States, The Associated Press reported.
Tech companies led US stocks broadly higher on Monday, extending the recent market rally and pushing the S&P 500 Index to another all-time high.
Wall Street kicked off the last week of a remarkable year for the stock market with mostly quiet trading as investors returned from the Christmas holidays and many overseas markets remained closed.
The S&P 500 rose 1.4% to 4,791.19, its fourth straight gain. The benchmark index, which capped a shorter week on Thursday with a record high, is on track to close the year with a 27.6% gain. 69 has achieved an all-time high this year so far.
The Dow Jones Industrial Average rose 1% to 36302.38 and the tech-heavy Nasdaq rose 1.4% to 15,871.26.
Major indices posted weekly gains last week as concerns about the potential impact of the COVID-19 omicron variant receded. However, much remains uncertain about the drug omicron, which is spreading rapidly and prompting a return to epidemiological restrictions in some places.
Small-cap stocks also rose. The Russell 2000 index rose 0.9% to 2261.46.
Trading is expected to be quiet but potentially choppy this week as the omicron coronavirus variable continues to spread rapidly across the US and beyond. However, most of the major investors have closed their positions for 2021 and are likely to continue trading until next week.
Airlines shares closed lower on news of pandemic-related cancellations. Delta Airlines shares fell 0.8 percent and United Airlines 0.6 percent.
Shares in cruise line operators also fell. Norwegian Cruise Line is down 2.6% in one of the biggest declines in the S&P 500. Carnival is down 1.2% and Royal Caribbean is down 1.3%.
Authorities in many countries have doubled down on vaccination efforts as the omicron outbreak has complicated efforts to stave off new closures while hospitals remain under pressure from infection by various alternatives.
In energy trading, US crude added 27 cents to $75.84 from $75.57 a barrel in electronic trading on the New York Mercantile Exchange. It gained $1.78 on Monday to $75.57.
Brent crude, the international benchmark, rose 27 cents to $78.87 a barrel.
In currency trading, the US dollar fell to $114.86 from $114.87. The euro traded at $1.1325, slightly down from $1.1327.
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