Japan shares tumble as fire at chip factory hits Renesas, carmakers

  • Reuters
  • Stock Market News
Japan shares tumble as fire at chip factory hits Renesas, carmakers
Credit: © Reuters.

TOKYO, March 22 (Reuters) - Carmakers led declines in Japanese shares on Monday after a fire at semiconductor supplier Renesas Electronics' 6723.T plant fanned worries about more chip supply shortfalls hitting vehicle production.

The Nikkei continued to underperform the broader market, after the Bank of Japan on Friday decided to exclude Nikkei-linked exchange traded funds (ETFs) from its purchase.

The Nikkei share average .N225 fell 1.84% to 29,239.92, testing a major support from its 50-day moving average at around 29,108.

On course to snap a nine-day winning streak, the broader Topix .TOPX lost 1.19% to 1,988.26, slipping from its 30-year peak hit on Friday.

Renesas dropped as much as 5.5% after the key automotive semiconductor supplier said production at its fire-damaged plant will take at least a month to restart, and carmakers will start to feel a supply pinch in about a month. transport equipment index .ITEQP.T was the biggest drag in the market.

Honda Motor 7267.T dropped 3.2% while Nissan Motor 7201.T lost 2.8%. Car parts maker Denso 6902.T shed 4.5% and Toyota Motor 7203.T declined 2.4%.

The shares that have big weightings in the Nikkei average continued to reel from the Bank of Japan's decision to buy only Topix-linked ETFs.

Fast Retailing 9983.T dropped 3.2% while Fanuc 6954.T lost 3.1%.

"Today we have had a confluence of negative factors such as a fire at Renesas factory and the market confusion after the BOJ's move. But fundamentally, the market is likely going through a correction on worries about rising U.S. bond yields," said Shinichi Ichikawa, senior fellow at Pictet Asset Management.

Tokio Marine 8766.T fell 4.6% on worries about its exposure to collapsed British supply chain finance firm, through its subsidiary in Australia.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles