Asian markets bounce back from omicron sell-offs

BANGKOK (AP) — Asian shares bounced back Tuesday from a worldwide slump in financial markets spurred by worries about how badly the omicron variant, inflation and other forces will hit the world economy.

Tokyo gained more than 2% and other benchmarks in Asia also were higher.

Much of the concern over the global outlook has been driven by the omicron variant of coronavirus. Cases have skyrocketed in Europe and in the U.S., where federal health officials announced it accounted for 73% of new infections last week, a nearly six-fold increase in only seven days.

In Asia, cases of coronavirus have surged in Australia and South Korea, as governments tighten precautions to prevent or curb outbreaks. But bargain-seeking traders have often opted to buy when prices fall, adding to the volatility that is common during the thin activity of the holiday season.

Tokyo's Nikkei 225 index rose 2.1% to 28,517.59 and the Hang Seng in Hong Kong added 1.2% to 23,024.78. In Seoul, the Kospi gained 0.4% to 2,975.03, while the Shanghai Composite index picked up 0.9% to 3,626.48. In Sydney, the S&P/ASX 200 climbed 0.9% to 7,355.00.

Monday's sharp declines were “enough to sucker the fast-money FOMO gnomes in Asia into action," Jeffrey Halley of Oanda said in a commentary.

Shares fell around the world on Monday. Stocks of oil producers helped lead the way lower after the price of U.S. crude fell 3.7% on concerns the newest coronanvirus variant could lead factories, airplanes and drivers to burn less fuel.

Oil prices also rebounded Tuesday, with the U.S. benchmark gaining 85 cents to $69.46 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard for pricing, rose 64 cents to $72.16 per barrel.

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