A man wearing a protective mask stands near an electronic stock board showing Japan's Nikkei 225 index on Dec. 14, 2021, in Tokyo. (AP Photo/Eugene Hoshiko)

       TOKYO (Kyodo) -- Tokyo stocks ended lower Tuesday on renewed fears over the Omicron coronavirus variant, while investors remained cautious ahead of the U.S. Federal Reserve policy meeting beginning later in the day.

       The 225-issue Nikkei Stock Average ended down 207.85 points, or 0.73 percent, from Monday at 28,432.64. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 4.32 points, or 0.22 percent, lower at 1,973.81.

       Decliners were led by air transportation, land transportation and service issues.

       The U.S. dollar hovered in the upper 113 yen range, as selling on Omicron concerns was offset by buying on speculation that a possible decision at the Fed meeting to accelerate its stimulus tapering plans would push U.S. Treasury yields up, dealers said.

       The Nikkei was pressured by overnight falls on Wall Street, with news of the world's first confirmed Omicron-linked death in Britain prompting the index to extend losses in the afternoon.

       "Although it's still difficult to ascertain the seriousness of the Omicron variant, some believe the new strain may become a threat amid reports of a death and resurgence in COVID-19 cases in Britain," said Shingo Ide, chief equity strategist at the NLI Research Institute.

       Caution also prevailed in the market toward the close ahead of the two-day Fed policy meeting, with some market participants refraining from making large moves.

       Investors are keeping a close eye on any indication of the number of potential rate hikes in the upcoming year by the Fed, he added.

       A decline in computer chip-related shares also weighed on the market after their U.S. counterparts fell overnight, Ide said.

       Among chip-manufacturing equipment makers, Tokyo Electron slumped 1,150 yen, or 1.8 percent, to 61,540 yen, and Advantest declined 150 yen, or 1.4 percent, to 10,220 yen.

       Air and land transportation issues were notably lower on renewed concerns that the Omicron variant may cause a resurgence of COVID-19 cases and hinder the movement of people.

       ANA Holdings, the parent of All Nippon Airways, lost 62.0 yen, or 2.6 percent, to 2,302.0 yen, while Japan Airlines sank 61 yen, or 2.8 percent, to 2,102 yen.

       Central Japan Railway, operator of Tokaido shinkansen bullet trains between the Tokyo and Osaka business areas, dropped 220 yen, or 1.4 percent, to 15,735 yen, while Odakyu Electric Railway declined 25 yen, or 1.1 percent, to 2,166 yen.

       On the First Section, declining issues outnumbered advancers 1,317 to 766, while 100 ended unchanged.

       Volume on the main section rose to 985.94 million shares from Monday's 955.79 million shares.

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