TOKYO: Tokyo shares opened slightly lower in thin holiday trade on Monday as fears lingered over the impact of the Omicron coronavirus variant.

The benchmark Nikkei 225 index dipped 0.07 percent, or 21.37 points, to 28,761.22 in early trade, while the broader Topix index was down 0.12 percent, or 2.39 points, to 1,984.39.

"A lack of direction is expected with a limited number of trading participants as the year-end holiday season begins," Mizuho Securities said in a note.

Senior strategist Yoshihiro Ito of Okasan Online Securities warned that "the sense of caution over the spread of infections (due to Omicron) remains strong".

Tokyo stocks close up after US gains

The dollar fetched 114.36 yen in early Asian trade, almost unchanged from 114.38 yen in New York on Friday.

SoftBank Group dropped 2.11 percent to 5,265 yen following reports that Credit Suisse has launched legal action to recover funds the bank says the Japanese conglomerate owes.

Airlines were lower with Japan Airlines falling 0.37 percent to 2,169 yen and ANA Holdings losing 0.61 percent to 2,368.5 yen.

Uniqlo operator Fast Retailing tumbled 1.24 percent to 66,700 yen.