Japan’s Nikkei reverses course to finish higher, COVID-19 concerns cap gains – Community News
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Japan’s Nikkei reverses course to finish higher, COVID-19 concerns cap gains

TOKYO, Nov 22 (Reuters) – Japan’s Nikkei stock average gave up losses to close higher on Monday as investors bought cheaper stocks, while concerns about the return of COVID-19 restrictions in Europe held back profits.

The Nikkei stock (.N225) averaged 0.09% at 29,774.11, after losing a staggering 0.68% earlier in the session. The broader Topix (.TOPX) fell 0.34% to 2,042.82.

“The downside of the Nikkei was a bit of a surprise,” said Kentaro Hayashi, senior strategist at Daiwa Securities.

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“Investors bought the shares on dips because they took a second look at Japanese stocks, which are relatively cheap compared to US stocks.”

The Japanese market opened lower, trailing the decline from the previous session in the Dow on the back of pandemic jitters.

Broader investor sentiment was also hit as Austria announced new restrictions to deal with rising infections, while fears were made that Germany would follow. read more

The Nikkei changed course after US futures rose during Asian trading hours. Heavyweight Uniqlo clothing store operator Fast Retailing (9983.T) rose 0.47% each.

Chip-related heavyweights Advantest (6857.T) and Tokyo Electron (8035.T) followed the gains of the Nasdaq Composite Index (.IXIC) in the previous session, rising 0.96% and 0.35% respectively.

Oil explorers (.IMING) weighed in as concerns over COVID-19 pushed oil prices down, with Inpex (1605.T) losing 4.47% and Japan Petroleum Exploration (1662.T) falling 0.35%.

Stocks that would benefit from an economic reopening fell, with airlines (.IAIRL.T) losing 1.66% and railroads (.IRAIL.T) losing 0.1%.

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Editing by Uttaresh.V

Our Standards: The Thomson Reuters Trust Principles.