TOKYO, Jan 14 (Reuters) - Japan's Nikkei index ended lower
on Friday, tracking weak overnight finish on Wall Street, with
technology heavyweights leading the losses, while concerns over
the impact of the Omicron coronavirus variant also curbed risk
appetite.
The Nikkei share average ended 1.28% lower at
28,124.28, after falling more than 2% to a near four-week low.
The broader Topix lost 1.39% to 1,977.66.
The Nikkei lost 1.2% this week and the Topix slipped 0.9%
for the week.
"The Japanese market fell a lot today - it dropped more than
the Dow and S&P overnight. Sentiment has been weakened by the
expected rate hikes in the United States so there are not many
buyers for Japanese shares," said Jun Morita, general manager of
the research department at Chibagin Asset Management.
All major indexes on Wall Street closed lower, with the
tech-heavy Nasdaq leading losses after a three-day rally, amid
talks signalling that the U.S. Federal Reserve would raise rates
as early as in March.
"Investors are also worried about the Omicron impact. Japan
was faring better than other countries, but now the number of
infections have started surging here as well."
Tokyo recorded a new four-month high in COVID-19 infections
on Thursday, and experts forecast the spread of the Omicron will
cause the daily count to triple by month's end.
Staffing agency Recruit Holdings, which many
investors see as a tech stock due to its holding in U.S. online
job search firm Indeed, dragged down the Nikkei the most with a
4.64% drop.
Robot maker Fanuc fell 5.12% and air-conditioner
maker Daikin Industries slipped 2.77%.
Fast Retailing bucked the trend of index
heavyweights, jumping 8.07%, as the owner of Uniqlo clothing
stores said it would have to raise pries of some products due to
higher costs for raw materials and shipping.
Hitachi gave up early gains to fall 0.36% after
local media reported the conglomerate would sell part of its
stake in Hitachi Construction Machinery.
Hitachi Construction tumbled 16.99%.
(Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)