Nikkei Climbs 1.04% to 28,750 as Omicron Fears Ease, Despite Deeper Q3 GDP Contraction

Japan's benchmark Nikkei 225 Index rose 295.13 points, or 1.04%, to 28,750.73 on Wednesday, extending the previous session's sharp gains after touching a high of 28,835.01. The rally tracked broadly positive overnight cues from Wall Street as concerns eased over the Omicron coronavirus variant's impact on global economic recovery. The advance came despite data showing Japan's economy contracted an annualized 3.6% in the July-September quarter, deeper than the 3.1% drop forecast and a reversal from the prior quarter's 2.0% growth, amid a summer surge in COVID-19 cases that triggered emergency restrictions. On a quarterly basis, GDP fell 0.9%. Tech and pharmaceutical shares led gains: Chugai Pharmaceutical surged more than 6%, Taiyo Yuden rose over 4%, and Advantest and Tokyo Electron each added more than 2%. Financials gained nearly 1% apiece, including Sumitomo Mitsui, Mitsubishi UFJ and Mizuho. Mitsui Fudosan fell more than 3%. The dollar traded in the mid-113 yen range.