Asian shares rise as Omicron fears subside

Asian shares gained on Tuesday, cruising in the slipstream of another record-setting day on Wall Street amid strong retail figures, while the safe-haven yen lost ground as traders stayed in riskier currencies and asset classes like equities.

A variety of asset classes from oil to Japan’s Nikkei Stock Average are now trading at around one-month highs, having walked back losses from late November when the Omicron variant of COVID-19 first emerged and sent investors scurrying for safe havens.

As the worst fears of the impact of the new variant have subsided, investors have been returning to risk assets.

On Tuesday, Japan’s Nikkei gained 1.1%, and touched its highest since Nov. 26, while MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.23%. Recent losses by index heavyweights like Alibaba and Tencent mean the broad benchmark is still well off its late November levels.

“The risk-on sentiment continues,” said Edison Pun, senior market analyst at Saxo Markets in Hong Kong, who said neither Omicron nor China’s coronavirus situation was troubling investors.

via Reuters