Japanese shares slump on governance worries, JDI tumbles as bailout falters

  • Reuters
  • Stock Market News
Japanese shares slump on governance worries, JDI tumbles as bailout falters
Credit: © Reuters.

By Stanley White

TOKYO, Sept 27 (Reuters) - Japanese shares fell on Friday by the most in almost five weeks due to worries about corporate governance after a media report that executives from Kansai Electric Power Co Inc 9503.T received payments from a former official of a town that hosts one of the utility's nuclear power plants. in Apple Inc AAPL.O supplier Japan Display Inc 6740.T tumbled by the most in three months after an influential Chinese investor withdrew from a financial bailout of the troubled smartphone screen maker, increasing the chance of the 80 billion yen ($742.46 million) deal collapsing. 0155 GMT the Nikkei index was down 1.34% at 21,752.13.

Kansai Electric's President Shigeki Iwane told reporters on Friday that he and some other executives had received 320 million yen payments from a person outside the company over a period of seven years.

The deputy mayor of the town hosting the nuclear power plant had told tax authorities he provided the money to Kansai Electric officials as a token of appreciation for supporting the town, Kyodo reported.

Iwane told reporters he and other officials were punished internally, but the payments raise questions about how Kansai Electric's internal controls allowed the officials to receive the money in the first place.

Nikkei shares were on course for a 1.50% decline this week, which would be the biggest weekly decline since Aug. 9, as sentiment for stocks weakened globally due to concerns about an impeachment probe of U.S. President Donald Trump. were 202 decliners on the Nikkei index against 20 advancers on Friday.

The largest percentage losses in the index were Kansai Electric down 7.43%, followed by Chiba Bank Ltd 8331.T losing 5.44% and NTN Corp 6472.T down by 5.26%.

The largest percentage gainers in the index were Fanuc Corp 6954.T up 1.18%, followed by Rakuten Inc 4755.T gaining 0.84% and DeNA Co Ltd 2432.T up by 0.69%.

The broader Topix .TOPX was down 1.60% at 1,597.37.

The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 0.49 billion, compared to the average of 1.16 billion yen in the past 30 days. ($1 = 107.7500 yen)

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