TOKYO, Dec 1 ― Tokyo stocks wobbled between positive and negative territory in directionless trade yesterday as investors remained cautious about a new virus strain and US monetary policy moves over inflation.
After opening higher, stocks dipped before recovering slightly by an hour into trade, with the benchmark Nikkei 225 index up 0.23 per cent, or 64.77 points, to 27,886.53.
The broader Topix index was up 0.20 per cent, or 3.92 points, to 1,932.27.
The erratic movement followed a global market rout after Moderna's chief warned current vaccines might be less effective at fending off the Omicron variant, and the US Fed chief warned of higher inflation for longer than expected.
“Uncertainties over the prospects for US monetary policy and concerns over the new strain of the coronavirus are seen prompting sell-orders,” Mizuho Securities said in a note.
Senior analyst Hideyuki Suzuki of SBI Securities told AFP that “the Moderna chief's comments were factored in during the previous Tokyo session to some extent, but worries over the US Federal Reserve's moves to hike interest rate to address inflation are weighing on the market.”
Investors will be watching how other Asian bourses and US futures move later in the day, analysts said.
The dollar fetched ¥113.25 (RM4.19) in early Asian trade, against ¥113.16 in New York late yesterday.
Among major shares in Tokyo, Canon was up 2.14 percent at 2,553.5 yen and industrial robot maker Fanuc climbed 3.62 per cent to 23,050 yen after brokerage houses raised their evaluation of the shares.
Sony Group was down 0.47 per cent at 13,760 yen and IT and system developer Fujitsu was off 0.96 per cent at ¥18,615 but game giant Nintendo was up 0.96 per cent at ¥50,580. ― AFP
