TOKYO (dpa-AFX) - The Japanese stock market is trading sharply higher on Tuesday, recouping some of the sharp losses in the previous two sessions, with the benchmark Nikkei index just below the 28,500 level, despite the sell-off on Wall Street overnight, as traders are looking to pick up stocks at a bargain following the recent weakness.
Meanwhile, traders remain concerned about the pace of the economic recovery from the pandemic amid fears of fresh disruptions across supply chains globally following tighter restrictions in Europe. The new coronavirus Omicorn variant has also spread to about 90 countries, with some domestic cases as well.
The benchmark Nikkei 225 Index is gaining 537.52 points or 1.92 percent to 28,475.33, after touching a high of 28,488.18 earlier. Japanese shares closed sharply lower on Monday.
Market heavyweight SoftBank Group is edging up 0.4 percent and Uniqlo operator Fast Retailing is gaining almost 2 percent. Among automakers, Honda is adding almost 1 percent and Toyota is up 1.5 percent.
In the tech space, Advantest and Tokyo Electron are gaining more than 3 percent each, while Screen Holdings is adding almost 4 percent. In the banking sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are gaining more than 1 percent each, while Mizuho Financial is adding almost 1 percent.
The major exporters are mostly lower. Panasonic is gaining almost 1 percent, while Canon and Mitsubishi Electric are adding more than 2 percent each. Sony is up more than 1 percent.
Among the other major gainers, Shionogi & Co. is surging more than 7 percent, Sharp is adding 4.5 percent and Japan Steel Works is gaining more than 4 percent, while Daiichi Sankyo and Ricoh are up almost 4 percent each. NEC, Sumitomo Chemical, Isetan Mitsukoshi, Sumitomo Dainippon Pharma, Sumco are rising more than 3 percent each.
Conversely, there were no major losers.
In the currency market, the U.S. dollar is trading in the higher 113 yen-range on Tuesday.
On Wall Street, stocks tumbled right at the start of the session on Monday, and stayed weak right through the day as rapidly spreading Omicron variant of the coronavirus raised concerns about global economic recovery.
The major averages all ended notably lower. The Dow, which plunged more than 700 points to 34,665.50, ended the day with a loss of 433.28 points or 1.23 percent at 34,932.16. The Nasdaq closed lower by 188.74 points or 1.24 percent at 14,980.94, recovering from the day's low of 14,860.04, while the S&P 500 settled at 4,568.02, recording a loss of 52.62 points or 1.14 percent.
The major European markets also closed notably lower on the day. The U.K.'s FTSE 100 lost 0.99 percent, Germany's DAX declined 1.88 percent and France's CAC 40 ended down 0.82 percent.
Crude oil futures settled sharply lower Monday as a rapid surge in Omicron variant of the coronavirus and stricter restrictions on movements in several countries raised concerns about outlook for energy demand. West Texas Intermediate Crude oil futures for February ended down by $2.63 or 3.7 percent at $68.23 a barrel.
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